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Bond yields trade flat on Friday

17 Sep 2021 Evaluate

Bond yields traded flat on Friday, as Reserve Bank of India (RBI) continued to remain net buyer of the US dollar in July 2021, after it net purchased $7.205 billion from the spot market. During 2020-21, the RBI had net purchased $68.315 billion from the spot market. It had bought $162.479 billion from the spot market and sold $ 94.164 billion during the fiscal 2020-21.

In the global market U.S. government bond yields rose on Thursday after a surprisingly strong reading in retail sales lifted some concerns about growth in the world's largest economy. Furthermore, oil prices barely moved even as more supply came back online in the U.S. Gulf of Mexico following two hurricanes, with benchmark contracts on track to post weekly gains of around 4% as the output recovery is seen lagging demand.

Back home, the yields on new 10-year Government Stock were trading flat with its previous close of 6.16% on Thursday.

The benchmark five-year interest rates were trading 1 basis point higher at 5.61% from its previous close of 5.60% on Thursday.

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