Login With Google
Bond yields
Why is it in the news?
- The yield on India’s 10-year benchmark bonds fell 5 basis points at closing to 6.982%
- Yields had fallen by 42 basis points (bps) in May, the most since November 2016.
More in the news
- Amid expectations of yet another interest rate cut by the Reserve Bank of India later this week, yield on the 10-year benchmark bond fell below 7%.
- The RBI reduced the interest rate twice in its last two policy meetings in February and April, by 25 bps each, to address the sluggish economic growth.
- India's gross domestic product (GDP) growth for the March quarter fell to 5.8%, its slowest pace in five years.
- That was slower than the median 6.3% estimate in a Bloomberg survey and 6.6% expansion in October-December.
- Oil prices extended declines as an increasingly aggressive US trade policy fueled fears the world could be heading for a significant economic slowdown.
- Crude fell as much as 3%, after slumping 5.5% on Friday. In the last five trading sessions, crude has declined nearly 13%.
- The RBI monetary policy decision is due on Thursday and according to economists and bankers surveyed by Mint, the central bank is likely to cut the key policy rate by 25 bps.
Source
The Hindu.