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Bond yields trade higher on Monday

15 Jul 2024 Evaluate

Bond yields traded higher on Monday as India’s factory output, measured in terms of the Index of Industrial Production (IIP), grew to a seven-month high of 5.9 per cent in May 2024, led by better-than-expected expansion in power and mining sectors.

In the global market, the 10-year Treasury yield was marginally lower on Friday as investors looked past a slightly hotter reading of wholesale inflation. Furthermore, oil futures prices settled slightly lower on Friday as investors weighed weaker U.S. consumer sentiment against mounting hopes for a Federal Reserve rate cut in September.

Back home, the yields on new 10 year Government Stock were trading 12 basis points higher at 7.10% from its previous close of 6.98% on Friday.

The benchmark five-year interest rates were trading 2 basis points lower at 6.95% from its previous close of 6.97% on Friday.

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