Bond yields traded lower on Thursday amid subdued macro-economic data. India’s industrial production growth remained subdued for the third straight month and expanded by 1.4 per cent in November, mainly due to the waning low base effect. Also, rising prices of essential kitchen items pushed the retail inflation to a six-month high of 5.59 per cent in December, close to the Reserve Bank’s upper tolerance limit of 6 per cent.
In the global market, longer-dated U.S. Treasury yields dipped on Wednesday after a reading on inflation was largely in line with expectations and did not alter views on the path of Federal Reserve policy. Furthermore, oil prices slipped on Thursday, trimming big gains from the previous two sessions, amid uncertainty over near-term demand as cases of the highly contagious Omicron variant of the coronavirus surge around the globe.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.57% from its previous close of 6.59% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points lower at 5.98% from its previous close of 6.01% on Wednesday.