India's 10-year yield dips to one and half week low

Indian G-sec yields continued to turn lower, easing from multi-month high amid a drop in US yields. Market considered tax cuts in GST rates but it looks that most of it were already factored in. The benchmark 6.33 GS 2035 yield is hovering around 6.51% right now. It fell to one and half week low of 6.49% in intraday moves. The 56th meeting of the GST Council was held in New Delhi under the chairpersonship of the Union Finance & Corporate Affairs Minister Nirmala Sitharaman. The GST Council made the recommendations relating to changes in GST tax rates, provide relief to individuals, common man, aspirational middle class and measures for facilitation of trade in GST. The council approved the rationalisation of the current 4-tiered tax rate structure into a ‘Simple Tax’ - a 2-rate structure with a standard rate of 18% and a merit rate of 5%; a special de-merit rate of 40% for a select few goods and services.