Bond yields edged lower on Monday despite India’s inflation based on wholesale price index (WPI) turned negative for the first time since July 2020 at (-) 0.92% for the month of April 2023 as against 1.34% in March 2023, on account of fall in prices of non-food articles, coal, electricity and mineral oils.
In the global market, U.S. Treasury yields rose on Friday after data showed that consumers' long-term inflation expectations increased to their highest reading since 2011 in May, while consumer sentiment slumped to a six-month low. Furthermore, Oil prices rose on Friday, and were set to end the week flat after three weeks of decline, as the market balanced supply fears against renewed economic concerns in the United States and China.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.98% from its previous close of 6.99% on Friday.
The benchmark five-year interest rates were trading flat with its previous close of 6.95% on Friday.
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