Indian Government Bond yield edge higher

After Reserve Bank of India (RBI) decides to inject Rs 10,000 crore through purchase of bonds from the secondary market, the bond yield witnessed an uptrend. RBI has already injected nearly Rs 25,000 crore by way of long-term repo operations (LTRO). The yields on new 10-year government bond were trading at 6.38 per cent, up by nine basis points from its previous close of 6.29 per cent. The benchmark five-year interest rates were trading 12 basis points higher at 6.17 per cent from its previous close of 6.05 per cent on Wednesday.

On international front, US is considering US$1 trillion federal stimulus package to help juice the economy while, European Central Bank (ECB) on Wednesday announced a US$ 820 billion bond purchase program to revive the hope of propping up the ailing Eurozone. 

The equity market all over the world witnessed a selling pressure amid fear of Coronavirus. On Thursday, Indian indices opened lower and traded in negative terrain for some time but later, there was some recovery and in the afternoon, BSE Sensex and NSE Nifty arrived in a positive terrain. However, this was short-lived and the market settled for the day in a negative terrain.