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Bond yields trade higher on Monday

24 Feb 2025 Evaluate

Bond yields traded higher on Monday as retail inflation for farm workers and rural labourers eased to 4.61% and 4.73%, respectively, compared to 7.52% and 7.37% in January 2024. The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) decreased by 4 points & 3 points, respectively for the month of January 2025, reaching 1316 and 1328 points.

In the global market, U.S. Treasury yields were sharply lower on Friday as investors ran for cover in the middle of a stock market sell-off, while concern over the health of the economy grew. Furthermore, oil prices settled down more than $2 a barrel on Friday, posting a weekly decline as investors grappled with a fading Middle East risk premium alongside uncertainty about a potential peace deal in Ukraine.

Back home, the yields on new 10 year Government Stock were trading 11 basis points higher at 6.81% from its previous close of 6.70% on Friday.

The benchmark five-year interest rates were trading 13 basis points higher at 6.79% from its previous close of 6.66% on Friday.

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