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Bond yields edge lower on Monday

15 Apr 2024 Evaluate

Bond yields edged lower on Monday as the provisional data released by the Ministry of Commerce & Industry showed that India’s wholesale price index (WPI)-based inflation accelerated to 0.53 per cent in March on an annual basis, as against 0.20 per cent in February. WPI inflation stood at 1.34 per cent in March 2023.

In the global market, U.S. Treasury yields declined on Friday as investors considered the state of the economy after the release of inflation data and weighed the path ahead for interest rates. Furthermore, oil rose around 1% on Friday on geopolitical tensions in the Middle East but posted a weekly loss on a bearish world oil demand growth forecast from the International Energy Agency (IEA) and worries about slower U.S. interest rate cuts.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.16% from its previous close of 7.17% on Friday. 

The benchmark five-year interest rates were trading flat with its previous close of 7.17% on Friday.

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