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Bond yields trade higher on Tuesday

31 Dec 2024 Evaluate

Bond yields traded higher on Tuesday as Reserve Bank of India (RBI) has said that asset quality of banks improved further and their gross non-performing assets (NPAs) or bad loans ratio declined to a 12-year low of 2.6 per cent in September 2024 on the back of falling slippages and steady credit demand.

In the global market, U.S. Treasury yields fell back on Monday in one of the final trading days of the year. Furthermore, Oil prices settled higher on Monday in thin late-year trade as investors bet on a drop in temperatures across the U.S. and Europe over the coming weeks to boost diesel demand.

Back home, the yields on new 10 year Government Stock were trading 10 basis points higher at 6.87% from its previous close of 6.77% on Monday.

The benchmark five-year interest rates were trading 9 basis points higher at 6.83% from its previous close of 6.74% on Monday.

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