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Bond yields trade lower on Thursday

11 Feb 2021 Evaluate

Bond yields traded lower on Thursday despite Industry body the Confederation of Indian Industry (CII) has said steps taken by the government is helping the country's exports to record positive growth and the trend is expected to continue.

In the global market, benchmark U.S. Treasury yields tumbled on Wednesday after data showed that inflation stayed benign in January, disappointing investors betting that price pressures would increase more than they did. Furthermore, oil prices fell, giving up some of the recent strong gains, although losses were curbed by production cuts and hopes that rollouts of vaccines will drive a recovery in demand.

Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 5.96% from its previous close of 6.01% on Wednesday.

The benchmark five-year interest rates were trading 7 basis points lower at 5.53% from its previous close of 5.60% on Wednesday.

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