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Bond yields edge lower on Tuesday

15 Nov 2022 Evaluate

Bond yields edged lower on Tuesday amid a private report stating that Indian businesses are likely to increase their spending on information technology slightly in 2023 amid the looming tensions on inflation and economic slowdown. India’s overall IT spending is projected to grow 2.6 per cent next year down from 22.1 per cent in 2021.

In the global market, Treasury yields climbed on Monday as markets scanned Federal Reserve speaker remarks and recent U.S. inflation figures for hints about the central bank’s policy plans. Furthermore, oil prices settled lower dragged down by a firmer U.S. dollar while surging coronavirus cases in China dashed hopes of a swift reopening of the economy for the world's biggest crude importer.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.27% from its previous close of 7.28% on Monday.

The benchmark five-year interest rates were trading 3 basis points lower at 7.14% from its previous close of 7.17% on Monday.

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