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Bond yields trade higher on Monday

05 Oct 2020 Evaluate

Bond yields traded higher on Monday, as Commerce Ministry in its latest data has showed that India’s merchandise exports snapped six-month losing streak and grew by 5.27 percent to $27.4 billion in September 2020 as compared to $ 26.02 billion in the same month a year ago. Key sectors such as petroleum, leather, engineering goods and gems and jewellery were registering negative growth rates.

In the global market, the benchmark 10-year U.S. Treasury yield rose modestly on Friday, steepening the yield curve, but remained range-bound in spite of news that President Donald Trump has contracted COVID-19 and that U.S. jobs growth slowed in September. Furthermore, oil prices rose about 2%, lifted by comments from doctors for U.S. President Donald Trump suggesting he could be discharged from hospital as soon as Monday, just a few days after his positive test for COVID-19 sparked widespread alarm.

Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.00% from its previous close of 5.99% on Thursday.

The benchmark five-year interest rates were trading 2 basis points lower at 5.27% from its previous close of 5.29% on Thursday.