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Bond yields trade lower on Tuesday

31 Oct 2023 Evaluate

Bond yields traded lower on Tuesday after China’s manufacturing activity unexpectedly contracted in October. The official purchasing managers' index (PMI) fell to 49.5 in October from 50.2 September, dipping back below the 50-point level demarcating contraction from expansion.

In the global market, U.S. Treasury yields pared gains on Monday, with longer-dated debt briefly edging lower, after the Treasury Department said it expects to borrow $76 billion less this quarter than anticipated in the third quarter on expectations of higher revenue receipts. Furthermore, oil slipped more than 3% on Monday as fears eased that the Israel-Hamas war would disrupt supply from the region, and as investors grew cautious ahead of this week's U.S. Federal Reserve meeting.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.35% from its previous close of 7.36% on Monday.

The benchmark five-year interest rates were trading 2 basis points lower at 7.34% from its previous close of 7.36% on Monday.

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