Bond yields traded lower on Wednesday after the Reserve Bank of India’s Monetary Policy Committee (MPC) kept the benchmark repo rate unchanged at 5.50?per?cent taking a wait-and-watch approach to assess the impact of US tariffs on the domestic economy. The MPC has also decided to keep the monetary policy stance unchanged at 'neutral'.
In the global market, U.S. Treasury yields fell on Tuesday, as markets assessed the outlook of rates by the Fed and the impact that an eventual government shutdown will have on the economy. Furthermore, Oil prices were little changed on Wednesday, as a draw in U.S. crude inventories helped stabilize markets after two days of sharp losses fueled by speculation that OPEC+ could raise output again in November.
Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 6.53% from its previous close of 6.57% on Tuesday.
The benchmark five-year interest rates were trading 11 basis points lower at 6.15% from its previous close of 6.26% on Tuesday.
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