Bond yields edged lower on Thursday, as the UN has released ‘the World Economic Situation and Prospects as of mid-2020’ report and in report slashed India's projected growth rate to 1.2 percent in 2020 and forecast that the global economy will contract sharply by 3.2 percent as the COVID-19 pandemic paralyses the world, sharply restricting economic activities, increasing uncertainties and unleashing a recession unseen since the Great Depression of the 1930s.
In the global market, U.S. Treasury yields were steady on Wednesday after Federal Reserve Chair Jerome Powell gave a solemn assessment of the U.S. economy and investors showed soft demand for a 30-year bond auction. Furthermore, oil prices crept up, supported by a surprise decline of U.S. crude inventories, but gains were capped by worries that a potential second wave of the coronavirus pandemic might trigger fresh lockdowns and slam fuel demand once again.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.08% from its previous close of 6.09% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 5.60% from its previous close of 5.61% on Wednesday.