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Bond yields trade lower on Monday

04 Dec 2023 Evaluate

Bond yields traded lower on Monday even after finance ministry stated that Goods and Services Tax (GST) collections jumped 15 per cent to nearly Rs 1.68 lakh crore in November 2023 on increased domestic activity and festive season buying. Goods and Services Tax (GST) mop-up was over Rs 1.45 lakh crore in November 2022.

In the global market, Treasury yields fell on Friday even after Federal Reserve Chairman Jerome Powell threw cold water on market expectations for aggressive interest rate cuts ahead. Furthermore, oil prices slumped more than 2% on Friday on investor skepticism about the depth of OPEC+ supply cuts and concern about sluggish global manufacturing activity. 

Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.27% from its previous close of 7.29% on Friday.

The benchmark five-year interest rates were trading 2 basis points lower at 7.24% from its previous close of 7.26% on Friday.