Bond yields were trading higher on Tuesday after India’s inflation based on wholesale price index (WPI) eased further to 4.73% for the month of January 2023 against 4.95% recorded in December 2022. Decline in the rate of inflation in January is primarily contributed by mineral oils, chemicals & chemical products, textiles, crude petroleum & natural gas, textiles, and food products. The wholesale inflation was 5.85% in November 2022.
In the global market, U.S. Treasury yields were mixed on Monday, as investors awaited key inflation data and fretted over the potential impact on future Federal Reserve monetary policy decisions. Furthermore, Oil prices edged higher on Monday, rebounding from early losses, as investors weighed Russia's plans to cut crude production and short-term demand concerns ahead of U.S. inflation data this week.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.37% from its previous close of 7.36% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 7.33% on Monday.
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