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Bond yields trade flat on Thursday

28 May 2020 Evaluate

Bond yields traded flat on Thursday, as Former Reserve Bank of India (RBI) Governor Duvvuri Subbarao said that India’s economy may decline by 5 percent in the current financial year (FY21) but may expand by around 5 percent in the next financial year (FY22).

In the global market, U.S. Treasury yields fell on Wednesday but held in their recent tight range, while the Treasury sold a record amount of five-year notes to relatively light demand. Furthermore, oil prices fell in early trade after U.S. crude, gasoline and heating oil inventories all rose more than expected, dousing hopes of a smooth recovery in demand from coronavirus lockdowns.

Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 5.98% on Wednesday.

The benchmark five-year interest rates were trading 1 basis point higher at 5.42% from its previous close of 5.41% on Wednesday.

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