Bond yields soften tracking US yields, profit booking caps gains

The yield on the 10-year Treasury declined on Wednesday after President Donald Trump reversed his comments about firing US Federal Reserve Chairman Jerome Powell

The government bond yields softened below the psychologically crucial 6.30 per cent mark in early trade on Wednesday, tracking the fall in US Treasury yields coupled with strong buying momentum in the gilts market, said dealers. However, traders sold bonds at a profit in the latter half of the day, causing the benchmark 10-year government bond yield to settle little changed at 6.33 per cent, against the previous close of 6.34 per cent.

 

“The buying momentum is there, and given the fall in US yields, the yield breached the 6.30 per cent level (yield on benchmark 10-year bond),” said a