Bond yields edged lower on Monday amid inflation based on wholesale price index (WPI) surged to a nine-month high of 0.73 percent in December 2023 as against 0.26 percent in November 2023.
In the global market, U.S. Treasury yields slid on Friday after producer prices data for December fell unexpectedly, raising bets of an early interest rate cut by the Federal Reserve this year. Furthermore, oil rose 1% on Friday as an increasing number of oil tankers diverted course from the Red Sea following overnight air and sea strikes by the U.S. and Britain on Houthi targets in Yemen after attacks on shipping by the Iran-backed group.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.14% from its previous close of 7.17% on Friday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.02% from its previous close of 7.05% on Friday.
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