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Bond yields edge higher on Thursday

28 Sep 2023 Evaluate

Bond yields edged higher on Thursday as Fitch Ratings stated that the inclusion of certain Indian sovereign bonds in key emerging-market bond indices managed by JP Morgan will support a diversification of the investor base for Indian government securities.

In the global market, U.S. Treasury yields were little changed to modestly higher on Wednesday, as traders took a breather after a months-long sell-off fueled by expectations that the Federal Reserve will keep rates high for some time to bring inflation down to its 2% target. Furthermore, oil prices surged 3% on Wednesday to the highest settlement in 2023, after a steep drop in U.S. crude stocks compounded worries of tight global supplies. 

Back home, the yields on new 10 year Government Stock were trading 5 basis points higher at 7.22% from its previous close of 7.17% on Wednesday.

The benchmark five-year interest rates were trading 6 basis points higher at 7.24% from its previous close of 7.18% on Wednesday.

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