Bond yields traded higher on 27th Feb, 2025
Meanwhile, Reserve Bank of India (RBI) lowered risk weights for bank finance to
NBFCs and microfinance loans, a move that will unlock more funds and boost
credit. A lower risk weight means that lenders need to set aside less funds as
a safety net for consumer loans, implying an increase in their lending
capacity.
In the global market, 10-year Treasury note yield slipped on
26th Feb as concerns over an escalating trade war and weak economic
growth led traders to send bond prices higher. Furthermore, oil prices fell to
two-month lows on Wednesday as a surprise build in U.S. fuel stockpiles
signalled demand weakness and a potential peace deal between Russia and Ukraine
continued to weigh on prices.
Back home, the yields on new 10-year Government Stock were
trading 12 basis points higher at 6.82% from its previous close of 6.70% on 25th
Feb.
The benchmark five-year interest rates were trading 12 basis points higher at 6.73% from its previous close of 6.61% on 25th Feb.
Source: Ace Equity
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