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Bond yields trade lower on Tuesday

21 Sep 2021 Evaluate

Bond yields traded lower on Tuesday as Icra Ratings said with the benefits of unlocking measures tapering out, high-frequency indicators have become uneven since August. The performance of the high-frequency indicators in August 2021 was decidedly uneven, especially when compared to the pre-COVID levels.

In the global market, U.S. Treasury yields fell on Monday as fears that property developer China Evergrande Group might default deepened a global equity sell-off and spurred investors to buy safe-haven bonds. Furthermore, oil prices rose as analysts pointed to signs of U.S. supply tightness, ending days of losses as global markets remain haunted by the potential impact on China's economy of a crisis at heavily indebted property group China Evergrande.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.12% from its previous close of 6.13% on Monday.

The benchmark five-year interest rates were trading 3 basis points higher at 5.58% from its previous close of 5.55% on Monday.

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