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Bond yields trade higher on Monday

10 Mar 2025 Evaluate

Bond yields traded higher on Monday amid a private report stating that the food inflation in India likely fell below 5 per cent for the first time since June 2023. The report also noted that the India's overall retail inflation is expected to have slowed down further in February 2025, falling below the 4 per cent mark, primarily due to a decline in vegetable prices.

In the global market, treasury yields advanced Friday as investors digested a February nonfarm payrolls report that showed weaker-than-expected jobs growth and the latest commentary from Federal Reserve Chair Jerome Powell. Furthermore, oil prices gained on Friday but retreated from session highs after U.S. President Donald Trump threatened sanctions on Russia if it fails to reach a cease-fire with Ukraine.

Back home, the yields on new 10 year Government Stock were trading 13 basis points higher at 6.81% from its previous close of 6.68% on Friday.

The benchmark five-year interest rates were trading 11 basis points higher at 6.71% from its previous close of 6.60% on Friday.

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