Bond yields trade lower on Tuesday

31 Mar 2020 Evaluate

Bond yields edged lower on Tuesday as Fitch Solutions slashed its estimate for India’s GDP growth in the fiscal starting April 1 (FY21) to 4.6% due to weaker private consumption and contraction in investment amid coronavirus outbreak, costing economies around the globe.

In the global market, longer-term U.S. Treasury yields recovered from lows in late trading on Monday as investors looked to some positive healthcare news and took signs from a stock market rally. Furthermore, oil recovered some ground as U.S. President Donald Trump and Russian President Vladimir Putin agreed to discuss stablising energy markets, but prices remain near 18-year lows as the coronavirus shutdown destroys demand.

Back home, the yields on new 10 year Government Stock were trading 10 basis points lower at 6.10% from its previous close of 6.20% on Monday.

The benchmark five-year interest rates were trading 15 basis points lower at 5.56% from its previous close of 5.71% on Monday.

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