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.