Bond yields edged higher on Tuesday, amid private report that the government might breach the fiscal deficit target this financial year amid drop in the revenue mobilisation and expected additional expenditure by the government.
In the global market, Long-dated Treasury yields climbed Monday as the yield curve steepened to its widest point this year amid increasing confidence that a phase-one trade deal would help bolster the U.S. and Europe’s growth prospects. Furthermore, Oil prices fell on the final day of the year on Tuesday, heading for their biggest annual rise since 2016, supported by a thaw in the prolonged US-China trade dispute and supply cuts.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.55% from its previous close of 6.54% on Monday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.48% from its previous close of 6.47% on Monday.
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