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Bond yields trade higher on Tuesday

13 Aug 2024 Evaluate

Bond yields traded higher on Tuesday as Consumer Price Index (CPI) based retail inflation declined to a five-year low of 3.54 per cent in July 2024 mainly on account of subdued prices of food items, and base effect.

In the global market, U.S. Treasury yields were lower on Monday as investors looked ahead to the latest inflation prints and other key economic data slated for the week. Furthermore, oil prices jumped by more than 3% on Monday, rising for a fifth consecutive session on expectations of a widening Middle Eastern conflict that could tighten global crude oil supplies.

Back home, the yields on new 10 year Government Stock were trading 12 basis points higher at 6.99% from its previous close of 6.87% on Monday.

The benchmark five-year interest rates were trading 11 basis points higher at 6.90% from its previous close of 6.79% on Monday.

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