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Bond yields trade lower on Wednesday

05 May 2021 Evaluate

Bond yields traded lower on Wednesday, as India's services sector activities eased to a three-month low in April, as the rise in business activity was constrained by the pandemic and sentiment towards growth prospects faded. The seasonally adjusted India Services Business Activity Index fell to 54 in April from 54.6 in March, the slowest increase in output in three months.

In the global market yields, safe-haven bid helped push U.S. Treasury yields lower on Tuesday, while U.S. Treasury Secretary Janet Yellen warned that rates may need to rise to keep the economy from running too hot. Furthermore, oil prices rose nearly 1%, extending overnight gains, after industry data estimated U.S. crude stockpiles fell much more than expected last week reinforcing bullish views on fuel demand in the world's largest economy.

Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 5.97% from its previous close of 6.01% on Tuesday.

The benchmark five-year interest rates were trading 2 basis points lower at 5.57% from its previous close of 5.59% on Tuesday.

 

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