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Bond yields trade higher on Wednesday

08 Jan 2025 Evaluate

Bond yields traded higher on Wednesday even after the First Advance Estimates released by the National Statistics Office (NSO) estimated that Indian economy to slow to a four-year low of 6.4 per cent in FY25, falling short of the Reserve Bank of India’s (RBI’s) projection of 6.6 per cent.

In the global market, U.S. Treasury yields rose on Tuesday after economic data suggested services inflation is proving hard to tame. Furthermore, Oil prices settled higher on Tuesday, driven by concerns over limited supply from Russia and Iran because of Western sanctions and expected higher Chinese demand.

Back home, the yields on new 10 year Government Stock were trading 12 basis points higher at 6.86% from its previous close of 6.74% on Tuesday.

The benchmark five-year interest rates were trading 12 basis points higher at 6.80% from its previous close of 6.68% on Tuesday.

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