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Bond yields edge lower on Monday

28 Nov 2022 Evaluate

Bond yields edged lower on Monday after credit rating agency, S&P Global Ratings in its latest report has slashed India's economic growth forecast to 7 per cent for current fiscal year (FY23) and 6% in the next fiscal year. The agency had in September projected the Indian economy to grow 7.3 per cent in 2022-23 and 6.5 per cent in next fiscal year (2023-24).

In the global market, U.S. Treasury yields were slightly lower Friday as investors digested the Federal Reserve’s November meeting minutes, which suggested that interest rate hikes would be slowed in the coming months. Furthermore, Oil prices were rising in thin trade early on Friday but were headed to a third consecutive weekly loss amid growing fears of slowing demand in China where Covid restrictions are returning amid spiking numbers of infections.

Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 7.26% from its previous close of 7.30% on Friday.

The benchmark five-year interest rates were trading 4 basis points lower at 7.11% from its previous close of 7.15% on Friday.

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