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Bond yields trade higher on Monday

25 Jan 2021 Evaluate

Bond yields traded higher on Monday with report that foreign portfolio investors (FPI) remained net buyers to the tune of Rs 18,456 crore so far in January as global liquidity led to continued investment in emerging markets.

In the global market, U.S. Treasury yields drifted lower on Friday as the market benefited from a risk-off sentiment sparked in part by coronavirus concerns and a bumpy road ahead for President Joe Biden's massive economic rescue package.  Furthermore, oil prices slipped for a second straight session as renewed COVID-19 lockdowns raised fresh concerns about global fuel demand.

Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 5.95% from its previous close of 5.93% on Friday.

The benchmark five-year interest rates were trading 4 basis points higher at 5.34% from its previous close of 5.30% on Friday.