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Bond yields trade higher on Tuesday

02 Feb 2021 Evaluate

Bond yields traded higher on Tuesday, as foreign institutional investors (FIIs) turned net buyers in Indian markets after a five-day hiatus. FIIs net bought shares worth Rs 1,494.23 crore.

In the global market U.S. Treasury yields slipped on Monday, pushed down by expectations of lower borrowing to fund economic stimulus measures and data that showed factory activity slowed last month. Furthermore, oil prices rose after major producers showed they were cutting crude output in line with their commitments on restraint, supporting a market thrown out of kilter by weak demand during the coronavirus pandemic.

Back home, the yields on new 10 year Government Stock were trading 7 basis points higher at 6.13% from its previous close of 6.06% on Monday.

The benchmark five-year interest rates were trading 10 basis points higher at 5.66% from its previous close of 5.56% on Monday.

 

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