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Bond yields edge lower on Friday

28 Oct 2022 Evaluate

Bond yields edged lower on Friday as the Reserve Bank of India (RBI) said it would hold a special meeting of its rate-setting committee on 3 November to prepare a report for the government on why it failed to keep retail inflation below the target of 6 percent for three consecutive quarters since January.

In the global market, treasury yields slid further on Thursday after data showed U.S. consumer and business spending slowed in the third quarter, pointing to a possible peak in inflation that could allow the Federal Reserve to ease its aggressive hiking of interest rates. Furthermore, oil prices gained on Thursday as low levels of diesel inventory ahead of winter triggered buying and reversed early losses on surprisingly high stocks of crude and gasoline.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.40% from its previous close of 7.41% on Thursday.

The benchmark five-year interest rates were trading 1 basis point higher at 7.33% from its previous close of 7.32% on Thursday.

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