Bond yields edged lower on Thursday, despite a report stated that as against a steep 17.5% higher tax collection budgeted for the full year, the government could mop-up only 4.7% more so far this year, with the direct tax kitty growing to Rs 5.50 lakh crore as of September 17, up from Rs 5.25 lakh crore a year-ago.
In the global market, US Treasury yields rose on Wednesday and the yield curve flattened after the Federal Reserve cut interest rates for the second time this year, but indicated that further cuts may not follow. Furthermore, Oil prices edged higher in early Asian trade after days of turbulence, with markets soothed by Saudi Arabia’s pledge to restore full production by end-September at facilities knocked out in drone and missile attacks last weekend.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.61% from its previous close of 6.62% on Wednesday.
The benchmark five-year interest rates were trading 5 basis point higher at 6.40% from its previous close of 6.35% on Wednesday.