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Bond yields edge higher on Thursday

26 Oct 2023 Evaluate

Bond yields edged higher on Thursday amid rising US bond yield that may result in more fund outflows from India. Provisional data from the National Stock Exchange showed that foreign institutional investors sold shares worth Rs 4,236.60 crore on October 25.

In the global market, treasury yields surged Wednesday after poor demand for a sale of five-year notes deepened anxiety about auction size increases expected to be announced next week. Furthermore, oil prices rose on Wednesday, buoyed by worries about conflict in the Middle East, but gains were capped by higher U.S. crude inventories and gloomy economic prospects in Europe. 

Back home, the yields on new 10 year Government Stock were trading 2 basis point higher at 7.36% from its previous close of 7.34% on Wednesday.

The benchmark five-year interest rates were trading 3 basis points higher at 7.36% from its previous close of 7.33% on Wednesday. 

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