Bond yields edged lower on Thursday, as traders took encouragement from Commerce and Industry Minister Piyush Goyal’s statement that foreign direct investments (FDI) into the country grew 3 per cent to $6.95 billion in April. During 2018-19, the country recorded the highest-ever total FDI inflow of $64.38 billion, which is 6 per cent higher as compared to 2017-18.
In the global market, the US Treasury yield curve steepened on Wednesday after the Federal Reserve's concerns about global growth increased expectations that the US central bank may cut rates more sharply than expected in July. Furthermore, US oil futures hit their highest in over a month as a potential hurricane threatened crude output in the Gulf of Mexico and as an incident involving a British tanker in the Middle East highlighted ongoing tensions there.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.53% from its previous close of 6.54% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.49% from its previous close of 6.50% on Wednesday.