Bond yields edged lower on Monday, as Environment and forest minister Prakash Javadekar termed the present economic slowdown as a ‘cyclical process’, he said the government remains optimistic about near-doubling the economy size to $5 trillion by 2024.
In the global market, a mixed employment report on Friday morning and an even-keel message from US Federal Reserve Chair Jerome Powell left US yields modestly lower, firming up market expectations the central bank will cut interest rates by the expected 25 basis points at its September meeting. Furthermore, Oil rose after a Saudi official said there would be no change in Saudi Arabia’s OPEC policy as Prince Abdulaziz bin Salman was made the new energy minister for the world’s biggest crude exporter over the weekend.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.57% from its previous close of 6.60% on Friday.
The benchmark five-year interest rates were trading 1 basis points higher at 6.30% from its previous close of 6.29% on Friday.