Bond yields traded lower on Thursday despite India’s inflation based on wholesale price index (WPI) eased to 1.22% (provisional) for the month of December 2020 as compared to 2.76% during the corresponding month of the previous year. Component wise, primary articles index having weight of 22.62%, declined by (-3.11%) to 146.5 (provisional) in December 2020 from 151.2 (provisional) for the month of November 2020.
In the global market, U.S. Treasury yields slid on Wednesday as the Treasury Department completed its final sale of $120 billion in coupon-bearing supply this week, in which investors showed strong demand for long-dated bonds. Furthermore, oil prices eased for a second day as mounting coronavirus cases globally raised demand concerns, although a drawdown in U.S. crude stocks for a fifth straight week capped losses.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 5.92% from its previous close of 5.94% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points lower at 5.23% from its previous close of 5.26% on Wednesday.