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Bond yields trade lower on Monday

05 Apr 2021 Evaluate

Bond yields traded lower on Monday, as Reserve Bank of India (RBI) data showed that the country's foreign exchange reserves declined by $2.986 billion to reach $579.285 billion in the week ended March 26. In the previous week ended March 19, the forex kitty had increased by $233 million to $582.271 billion. It had touched a record high of $590.185 billion in the week ended January 29, 2021.

In the global market, Shorter-dated U.S. Treasury yields rose on Friday, flattening the yield curve, after the Labor Department reported stronger-than-forecast jobs growth in March. Further, oil prices slipped, paring strong gains made in the previous session after OPEC+ agreed last week to gradually ease some of its production cuts between May and July.

Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 6.13% from its previous close of 6.17% on Wednesday.

The benchmark five-year interest rates were trading 12 basis points lower at 5.58% from its previous close of 5.70% on Wednesday.

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