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The aid organisation, Norwegian People's Aid, said more than 50 others were wounded when air force planes dropped 14 bombs on the market in the early afternoon.
"Apparently the bombs landed smack in the middle of a market place. It is carnage," NPA spokesman Dan Eiffe said.
The rebel Sudan People's Liberation Army has its biggest stronghold in Yei, a southern town of around 80,000.
Series of attacks
It is the latest in a series of attacks by the Sudanese air force using Antonov planes on rebel-held centres.
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Southern Sudan is populated by Africans who follow mainly Christian or animist beliefs.
The Muslim Arab northerners form the support base for the succession of unstable military governments which have ruled Africa's largest country since independence from the United Kingdom in 1956.
It is estimated that more than 1.5 million people have died in Sudan in fighting and war-related famine.
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