Bond yields traded higher on Tuesday despite Department for Promotion of Industry and Internal Trade’s (DPIIT) data showed that foreign direct investment (FDI) in India dipped by 5.6 per cent year-on-year to $10.9 billion in October-December quarter of this fiscal (2024-25), as compared to FDI inflows of $11.55 billion during October-December 2023-24 due to global economic uncertainties.
In the global market, The 10-year Treasury yield pulled back on Monday as investors readied for President Donald Trump’s tariffs on Canada and Mexico to go into effect. Furthermore, oil prices decreased on Monday as US tariffs raised demand concerns, while Russia-Ukraine peace efforts eased geopolitical risks.
Back home, the yields on new 10 year Government Stock were trading 12 basis points higher at 6.85% from its previous close of 6.73% on Monday.
The benchmark five-year interest rates were trading 10 basis points higher at 6.75% from its previous close of 6.65% on Monday.
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