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Bond yields trade higher on Wednesday

05 Mar 2025 Evaluate

Bond yields traded higher on Wednesday as India’s services sector activity expanded sharply in the month of February, boosted by improving domestic and international demand. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index jumped to 59.0 in February from 56.5 in January.

In the global market, 10-year Treasury yield edged higher on Tuesday as U.S. President Donald Trump’s tariffs on Canada, Mexico and China went into effect, escalating fears of a global trade war. Furthermore, oil prices extended losses on Tuesday after reports of OPEC+ plans to proceed with output increase in April while further price pressure was applied by U.S. tariffs on Canada, Mexico and China as well as Beijing’s retaliatory tariffs.

Back home, the yields on new 10 year Government Stock were trading 09 basis points higher at 6.83% from its previous close of 6.74% on Tuesday. 

The benchmark five-year interest rates were trading 08 basis points higher at 6.73% from its previous close of 6.65% on Tuesday.

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