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Bond yields trade higher on Monday

13 Jan 2025 Evaluate

Bond yields traded higher on Monday as India’s industrial production growth, measured in terms of the Index of Industrial Production (IIP), accelerated to a six-month high of 5.2 per cent in November 2024, mainly due to good show by manufacturing sector.

In the global market, U.S. Treasury yields rose on Friday after a stronger-than-expected jobs data reinforced expectations that the Federal Reserve will likely keep interest rates elevated for longer than traders were betting on. Furthermore, oil prices jumped on Friday as the U.S. Treasury Department announced sweeping sanctions against Russia’s oil industry.

Back home, the yields on new 10 year Government Stock were trading 20 basis points higher at 6.96% from its previous close of 6.76% on Friday.

The benchmark five-year interest rates were trading 19 basis points higher at 6.90% from its previous close of 6.71% on Friday.