Bond yields traded flat on Wednesday, as investors remained cautious on report that India’s trade deficit slightly widened to $13.72 billion in April from $13.25 billion a year ago. Exports grew by 5.17% to $25.91 billion in April compared to the same month last year on account of healthy performance by engineering, chemicals and pharmaceutical segments. Imports too grew by 4.60% to $39.63 billion in the month on yearly basis.
In the global market, the yield on the benchmark 10-year Treasury note early Tuesday climbed to match its highest levels since 2011 after a strong retail sales number highlighted the economy’s steady momentum. Furthermore, oil prices fell, weighed down by ample supplies despite ongoing output cuts by producer cartel OPEC and looming U.S. sanctions against major crude exporter Iran.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 7.90% on Tuesday.
The benchmark five-year interest rates were trading 1 basis points lower at 7.90% from its previous close of 7.91% on Tuesday.
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