Bond yields traded flat on Monday, as investors remained cautious after the Reserve Bank of India announced another open market sale of bonds. However, investors took some support with data showing that India’s annual wholesale price inflation (WPI) eased to 2.60% in September from the provisional 3.24% in the previous month.
In the global market, U.S. Treasury yields fell to two-week lows on Friday after consumer price data showed still benign inflation, disappointing investors who had expected it to improve. Furthermore, Oil markets jumped on concerns over potential renewed U.S. sanctions against Iran as well as conflict in Iraq, while a falling U.S. rig count supported prices there.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 6.74% on Friday.
The benchmark five-year interest rates were trading flat at its previous close at 6.67% on Friday.
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