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Bond yields trade higher on Tuesday

07 Sep 2021 Evaluate

Bond yields traded higher on Tuesday as RBI’s data showed that sales of 1,647 listed private manufacturing companies recorded ‘extraordinarily high’ growth of 75 per cent in the first quarter of FY'22 mainly due to a very low base in the pandemic-hit year-ago period.

In the global market, U.S. Treasury yields higher on Monday and the yield curve steepened after data showed wages increased more than expected in August even as jobs growth slowed. Furthermore, oil prices were wobbly as investors grappled with demand concerns after Saudi Arabia's sharp cuts to crude contract prices for Asia.

Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.19% from its previous close of 6.17% on Monday.

The benchmark five-year interest rates were trading 4 basis points higher at 5.63% from its previous close of 5.59% on Monday.

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