Bond yields edged lower on Thursday, on sustained demand from corporates and banks. However, gains were limited as investors remained cautious ahead of RBI’s monetary policy outcome, scheduled later in the day.
In the global market, U.S. Treasury yields rose on Wednesday and stocks recovered much of their earlier losses, after China retaliated against the Trump administration’s plan to impose tariffs on Chinese goods. Furthermore, oil prices rose, holding onto a late-session rally the previous day, buoyed by the U.S. government data showing a surprise drawdown in crude stockpiles.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.29% from its previous close of 7.30% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.24% from its previous close of 7.23% on Wednesday.
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