Bond yields edged lower on Wednesday even after India’s inflation based on wholesale price index (WPI) eased further to 5.85% in the month of November 2022 as against 8.39% recorded in October 2022, primarily contributed by fall in prices of food articles, basic metals, textiles, chemicals & chemical products and paper & paper products as compared to the corresponding month of the previous year. The wholesale inflation was 10.70% in September 2022.
In the global market, Treasury yields slid on Tuesday after data showed inflation rose less than expected for November, fueling hope that the Federal Reserve will slow the pace of rate hikes. Furthermore, U.S. oil settled over $80 a barrel on Tuesday and recorded its biggest daily gains in over a month, as investors bought up risk assets after U.S. data pointed to slowing inflation.
Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 7.21% from its previous close of 7.26% on Tuesday.
The benchmark five-year interest rates were trading 4 basis points lower at 7.09% from its previous close of 7.13% on Tuesday.
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