Bond yields traded flat on Thursday, amid UN Conference on Trade and Development (UNCTAD) in its latest report has said that Foreign Direct Investment (FDI) flows to India in 2021 were 26 percent lower, mainly because large M&A deals recorded in 2020 were not repeated. It also noted that the FDI into India increased 27 percent to $64 billion in 2020 from $51 billion in 2019, pushed up by acquisitions in the information and communication technology (ICT) industry.
In the global market, U.S. Treasury yields eased on Wednesday from two-year highs, as investors took advantage of higher yields resulting from the recent sell-off to buy the debt and as the Treasury saw strong demand for a sale of 20-year bonds. Furthermore, oil prices slipped back after hitting their highest levels since 2014 in the previous session on the back of strong demand and short-term supply disruptions, underlying factors that limited losses as investors took profits.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.59% on Wednesday.
The benchmark five-year interest rates were trading flat with its previous close of 6.05% on Wednesday.