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Bond yields trade higher on Tuesday

02 Mar 2021 Evaluate

Bond yields traded higher on Tuesday, as the Reserve Bank of India (RBI) remained net buyer of the US dollar in December after it purchased $3.991 billion from the spot market. During the reporting month, the central bank bought $10.014 billion and sold $6.023 billion in the spot market.

In the global market benchmark U.S. Treasury yields eased for a second straight session on Monday from a one-year high hit last week as Federal Reserve officials continued to downplay runaway inflation concerns, but a round of solid economic data curbed the decline. Furthermore, oil prices fell more than 1%, extending losses that began last week, as investors unwound long positions on concern that OPEC may agree to increase global supply in a meeting this week and Chinese demand may be slipping.

Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.23% from its previous close of 6.20% on Monday.

The benchmark five-year interest rates were trading 2 basis points higher at 5.78% from its previous close of 5.76% on Monday.

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