After the victory of NDA with a major mandate, the bond market has been gaining ground for six-straight sessions, with yield thereby declining in its wake. The yield on 10-year benchmark bonds have fallen to levels last seen one and a half years back at 7.12%. On Tuesday, bond yielded ended still lower at 7.148%.
Further, direction to the bond market will be given by the GDP data due to be released on May 31, 2019, and the RBI's MPC meet scheduled for June 6, 2019.
Also, fall in crude oil prices kept the momentum in bond markets to continue. The US-China tensions see no deal in near course and amid it, global growth concerns have again surfaced.
Soon after the swearing-in ceremony is done with for the new government, the focus will shift to the full Budget of the government with respect to its borrowing targets and fiscal deficit.