Bond yields traded lower on Thursday after India’s service sector activity fell in the month of January, as growth was curbed by the escalation of the pandemic. Moreover, job shedding continued and business confidence took a hit.
In the global market, an unexpected decline in private payrolls on Wednesday pushed U.S. Treasury yields slightly lower as investors weighed the significance for Friday's broader jobs report and the Federal Reserve's plan to raise interest rates this year. Furthermore, oil prices eased following weak U.S. payrolls data and some profit taking, but remained underpinned by tight supply as OPEC+ producers stuck to planned moderate output increases.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.87% from its previous close of 6.88% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.21% from its previous close of 6.22% on Wednesday.