Bond yields edged lower on Tuesday despite gross Goods and Services Tax (GST) collection surged 8 per cent to Rs 1.74 lakh crore in June 2024 as compared to Rs 1.61 lakh crore mopped up in June 2023, reflecting a buoyant economy, with businesses demonstrating commendable self-compliance.
In the global market, benchmark 10-year Treasury yields rose Monday to their highest levels since mid-June at the start of a holiday-shortened week that will likely be marked by low trading volumes. Furthermore, oil prices climbed about 2% on Monday on hopes of rising demand during the Northern Hemisphere’s peak summer driving season and worries that OPEC+ production cuts could result in supply deficits later in the year.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.00% from its previous close of 7.01% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 7.02% on Monday.