Bond yields traded higher on Thursday, as India’s service sector activity improved further in the month of April, with a surge in incoming new work boosting business activity and supporting a renewed increase in employment. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index surged to 57.9 in April from 53.6 in March. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- also improved to 57.6 in April from 54.3 in March.
In the global market, U.S. Treasury yields fell sharply on Wednesday in volatile trading, after Federal Reserve Chairman Jerome Powell said the central bank has ruled out, for now, a rate hike of three-quarters of a percentage point at upcoming monetary policy meetings. Furthermore, Oil prices edged higher, extending gains from the previous session, as a European Union proposal for new sanctions against Russia, including an embargo on crude in six months, offset concerns over Chinese demand.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 7.41% from its previous close of 7.37% on Wednesday.
The benchmark five-year interest rates were trading 5 basis points higher at 7.18% from its previous close of 7.13% on Wednesday.