Bond yields edged lower on Wednesday, as some encouragement came with government’s report that demonetisation followed by digitalisation has succeeded in reducing incremental growth in currency in circulation by over Rs 3 lakh crore. The notes in circulation (NIC) as on November 4, 2016 were worth Rs 17,74,187 crore which have increased to Rs 22,35,648 crore as on December 2, 2019.
In the global market, most US Treasury yields were modestly higher on Tuesday, as risk appetite improved on optimism that US tariffs on Chinese goods set to take effect on Sunday might be delayed. Furthermore, Oil prices fell after industry data showed a surprise build in crude oil inventory in the United States and as investors waited for news on whether a fresh round of US tariffs on Chinese goods would take effect on Sunday.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.69% from its previous close of 6.70% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.48% from its previous close of 6.49% on Tuesday.
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