Bond yields traded flat on Tuesday after Chief Economic Adviser (CEA) K V Subramanian has expressed hope that economic growth during the current financial year (FY22) would be around 11 per cent as projected in the latest Economic Survey. He also said the overall impact of the second wave on the economy will not be very large.
In the global market, U.S. Treasury bond yields tumbled to five-month lows on Monday as the rapid increase in new coronavirus cases sparked fears global growth would slow and hamper the reopening of economies. Furthermore, oil prices stabilised after slumping around 7% in the previous session amid a broader market retreat led by concerns about a resurgence of COVID-19 infections, which came just as producers inked a new supply deal.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.12% on Monday.
The benchmark five-year interest rates were trading 2 basis points lower at 5.63% from its previous close of 5.65% on Monday.