Bond yields traded lower on Tuesday, as traders await steps from the central bank to boost investors’ appetite, after New Delhi recently announced a stimulus plan to shield the economy from the coronavirus impact.
In the global market, U.S. Treasury yields advanced on Monday, as investors grew optimistic about a potential vaccine that could help fight the coronavirus pandemic,boosting overall risk appetite as stocks and oil gained as well. Furthermore, oil prices rose, extending gains for a fourth straight session, amid signs that producers are cutting output as promised just as demand picks up, stoked by more countries easing out of curbs imposed to counter the coronavirus pandemic.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.03% from its previous close of 6.05% on Monday.
The benchmark five-year interest rates were trading 3 basis points lower at 5.56% from its previous close of 5.59% on Monday.