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Bond yields trade higher on Monday

07 Apr 2025 Evaluate

Bond yields traded higher on Monday as Federation of Automobile Dealers Associations (FADA) has said that automobile retail sales in India rose 6 per cent to 2,61,43,943 units in FY25 with rural areas performing better than urban regions across passenger vehicle and two-wheeler segments.

In the global market, U.S. Treasury yields continued to plummet on Friday, with 10-year Treasury yield earlier falling below 4%, after China retaliated against President Donald Trump's aggressive 'reciprocal tariff' policy rollout, causing investors to flood into bonds for safety on fears of a global recession. Furthermore, oil prices slid more than 3 per cent on Monday, deepening last week's losses, as escalating trade tensions between the United States and China stoked fears of a recession that would reduce demand for crude.

Back home, the yields on new 10 year Government Stock were trading 12 basis points higher at 6.58% from its previous close of 6.46% on Friday.

The benchmark five-year interest rates were trading 13 basis points higher at 6.43% from its previous close of 6.30% on Friday.

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