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Bond yields trade higher on Monday

04 Dec 2017 Evaluate

Bond yields edged higher on Monday, though investors remained cautious ahead of Reserve Bank of India’s monetary policy review on December 6.

In the global market, U.S. Treasury yields plunged on Friday after report that Michael Flynn, a former adviser to U.S. President Donald Trump, said he was prepared to testify that Trump directed him to make contact with the Russians when he was a presidential candidate. Furthermore, Oil fell after U.S. shale drillers added more rigs last week, but prices held not far off their highest since mid-2015, supported by an extension of output cuts agreed last week by OPEC and other producers.

Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.09% from its previous close of 7.06% on Thursday.

The benchmark five-year interest rates were trading 2 basis points higher at 6.92% from its previous close of 6.90% on Thursday.