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Bond yields edge flat on Friday

14 Jun 2024 Evaluate

Bond yields edged flat on Friday amid Inflation based on wholesale price index (WPI) accelerated in the month of May 2024 to 2.61% from 1.26% in April 2024, due to increase in prices of food articles, minerals, basic metals, computer, electronic & optical products and electrical equipments.

In the global market, U.S. Treasury yields slipped once again on Thursday after the latest inflation data showed an unexpected drop. Furthermore, oil prices rose slightly on Thursday in up-and-down trade, supported by an OPEC forecast for demand growth and as data showing an U.S. easing labor market and slowing inflation which stoked hopes for Federal Reserve rate cuts despite recent comments from Fed officials.

Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.98% on Thursday.  

The benchmark five-year interest rates were trading 1 basis point higher at 7.02% from its previous close of 7.01% on Thursday.