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Bond yields edge higher on Tuesday

16 Apr 2024 Evaluate

Bond yields edged higher on Tuesday after Reserve Bank of India (RBI) in its latest data on ‘Overseas Direct Investment’ has showed that India’s outward foreign direct investment (OFDI) commitments rose 48.68% to $3919.84 million in March 2024 as against $2636.42 million in March 2023. Sequentially, OFDI commitments were also up from $3,671.94 million in February 2024.

In the global market, yields on benchmark U.S. 10-year Treasuries hit five-month highs on Monday after stronger-than-expected retail sales data from March suggested the Federal Reserve could delay cutting interest rates this year. Furthermore, oil prices sank by about 1% a barrel on Monday after Iran's weekend attack on Israel proved to be less damaging than anticipated, easing concerns of a quickly intensifying conflict that could displace crude barrels.

Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.19% from its previous close of 7.17% on Monday.

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

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