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Bond yields trade lower on Tuesday

17 Dec 2019 Evaluate

Bond yields edged lower on Tuesday, despite Moody’s report showed that it has cut its FY20 GDP growth forecast for India steeply to 4.5% from 5.8% predicted in October. The agency had predicted India’s growth this fiscal to be 6.2% in August.

In the global market, US Treasury yields rose on Monday as traders took an optimistic view of a preliminary US-China trade deal and drove stocks to new highs. Furthermore, Oil prices trickled a fraction lower, but remained near a three-month high as investors kept the faith with hopes that a fully-fledged US-China trade deal is in the pipeline and set to stoke oil demand in the world's biggest economies.

Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.77% from its previous close of 6.79% on Monday.

The benchmark five-year interest rates were trading 4 basis points lower at 6.60% from its previous close of 6.64% on Monday.

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