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Bond yields trade higher on Thursday

03 Mar 2022 Evaluate

Bond yields traded higher on Thursday after commerce ministry in its preliminary data has indicated that India's exports rose by 22.36 per cent to $33.81 billion in February 2022 on account of healthy growth in sectors like engineering, petroleum and chemicals.

In the global market, U.S. Treasury yields rose from eight-week lows on Wednesday as Federal Reserve Chairman Jerome Powell supported the U.S. central bank raising rates this month, while being flexible in response to the Russia-Ukraine war's impact on the economy. Furthermore, oil prices extended their rally, with Brent rising above $116 a barrel, as trade disruption and shipping issues from Russian sanctions over the Ukraine crisis sparked supply worries while U.S. crude stocks fell to multi-year lows.

Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.84% from its previous close of 6.81% on Wednesday.

The benchmark five-year interest rates were trading 4 basis points higher at 6.13% from its previous close of 6.09% on Wednesday.

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