Bond yields edged higher on Tuesday, as investors remain concerned with Nobel laureate and economist Abhijit Banerjee’s statement that the country could be passing through a phase of recession, and there is ‘nothing in the data’ that suggests otherwise.
In the global market, Benchmark US Treasury yields fell to three-month lows as investors piled in on concerns about the economic impact of China’s spreading coronavirus, while part of the yield curve re-inverted for the first time since December. Furthermore, Oil futures slipped, extending losses into a sixth session as the spread of a new virus in China and other countries raised concerns about a hit to economic growth and slower oil demand.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.56% from its previous close of 6.55% on Monday.
The benchmark five-year interest rates were trading 2 basis points higher at 6.39% from its previous close of 6.37% on Monday.