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Bond yields edges lower on Tuesday

25 Oct 2022 Evaluate

Bond yields edged lower on Tuesday as foreign investors have pulled out close to Rs 6,000 crore from the Indian equity markets so far this month in the wake of strength in the US dollar against the rupee. With this, the total outflow by Foreign Portfolio Investors (FPIs) has reached Rs 1.75 trillion so far in 2022, data with the depositories showed.

In the global market, U.S. treasury climbed on Monday as investors remained concerned the Federal Reserve would maintain its ultra hawkish stance on fighting inflation despite economic data pointing to a slowdown in U.S. business activity in October. Furthermore, oil prices slid on Monday after Chinese data showed that demand from the world's largest crude importer remained lacklustre in September as strict COVID-19 policies and fuel export curbs depressed consumption.

Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 7.46% from its previous close of 7.51% on Friday.

The benchmark five-year interest rates were trading 8 basis points lower at 7.35% from its previous close of 7.43% on Friday.

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