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Shares in Yes Bank rallied 4 per cent, while ICICI Bank gained 1 per cent and HDFC Bank also rallied 1 per cent. Most of the PSU banks led by IDBI Bank and Oriental Bank were trading higher.
The yield on the benchmark 10-year government bond hit 9.48 per cent earlier this week pushing down shares of Yes Bank and State Bank to 52-week lows. The yields have now cooled to 8.30 per cent, which has led to a rally in banking stocks.
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