ET:Bond yields lower on crude; macro report awaited
Benchmark 10-year bond yield is down 2 basis points to 7.71 per cent on lower crude, follow-on buying on government lowering withholding tax for foreigners.
Brent oil steadied near $100 a barrel on Thursday, holding close to two-week lows hit in the previous session, as growing worries about the US and Chinese economies muddied the outlook for oil demand from the top two consumers.
The government will cut the tax on interest payments to foreigners on government and corporate debt to 5 per cent from up to 20 per cent for a two-year period, in a bid to draw further inflows to bridge its current account deficit and polish its reformist credentials.
RBI will release a report on the economy at 1700 hrs which will give some clues ahead of the policy.
