Bond yields traded flat on Tuesday, as Credit rating agency Crisil in its latest report has said that it is ‘too early’ to say that the second wave of COVID-19 pandemic has peaked and flagged concerns over the vaccination drive. It also acknowledged that the new cases have fallen without a dip in testing numbers.
In the global market U.S. Treasury yields traded little changed on Monday, shrugging off the highest prices ever paid in a May manufacturing survey for New York state, as traders mull how tolerant Federal Reserve policymakers will be as the pace of inflation quickens. Furthermore, oil prices climbed, extending gains from the previous day, as optimism over the reopening of the U.S. and European economies outweighed fears of slower fuel demand in Asia due to surging COVID-19 cases and a new wave of restrictions.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 5.97% on Monday.
The benchmark five-year interest rates were trading 2 basis points higher at 5.57% from its previous close of 5.55% on Monday.