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Bond yields trade lower on Tuesday

09 Aug 2016 Evaluate

Bond yields traded lower on Tuesday after the Reserve Bank of India (RBI) at its policy meet kept key policy rates unchanged and retains FY17 GDP growth forecast at 7.6%.

In the global market, U.S. Treasury yields were up slightly, with longer-dated maturities edging up to their highest level in more than two weeks on a modest rise in expectations that the Federal Reserve could raise short-term interest rates by year-end. Furthermore, Crude prices inched down, paring gains from a day earlier, as worries over a global oil glut tempered speculation that OPEC would try to restrain output.

Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 7.12% from its previous close at 7.17% on Monday.

The benchmark five-year interest rates were trading 2 basis points lower at 7.05% from its previous close at 7.07% on Monday. 

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