Bond yields traded higher on Thursday as India’s retail inflation, based on the Consumer Price Index (CPI), for January stood at 4.31 per cent, dropping significantly from 5.22 per cent in December.
In the global market, U.S. Treasury yields rose sharply on Wednesday as investors reacted to the hotter-than-expected January consumer inflation report. Furthermore, oil prices fell on Wednesday, ending three days of gains, as industry sources pointed to rising U.S. crude stockpiles and hawkish remarks from Fed Chair Jerome Powell that signaled slower rate cuts this year.
Back home, the yields on new 10 year Government Stock were trading 12 basis points higher at 6.81% from its previous close of 6.69% on Wednesday.
The benchmark five-year interest rates were trading 10 basis points higher at 6.73% from its previous close of 6.63% on Wednesday.
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