Bond yields trade flat on Wednesday

17 Feb 2021 Evaluate

Bond yields traded flat on Wednesday, as ICRA Ratings in its latest report has said that after two consecutive quarters of contraction, India's Gross domestic product (GDP) is set to revert to the growth territory in the October-December 2020 period (Q3FY21) compared to the year-ago period.

In the global market yields, the dollar advanced, hitting a four-month high against the yen as U.S. bond yields jumped on the prospects of further economic recovery and a possible acceleration in inflation. Furthermore, oil prices fell in early trade as the U.S. dollar climbed, retreating after a two-day rally that was driven by an Arctic blast curbing output from oil and gas fields in Texas, the country's biggest oil-producing state.

Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.02% on Tuesday.

The benchmark five-year interest rates were trading 4 basis points higher at 5.59% from its previous close of 5.55% on Tuesday.

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