Bond yields edged flat on Thursday after Retail inflation based on Consumer Price Index (CPI) jumped to a five-month high of 7.41 percent in September 2022 mainly due to costlier food items. It is for the ninth month in a row that retail inflation has remained above the Reserve Bank of India's upper tolerance level of 6 percent.
In the global market, Treasury yields dropped on Wednesday following the release of the Federal Reserve’s September meeting minutes, which offered little fresh insights into policy makers’ thinking about the path of future rate hikes. Furthermore, oil prices fell for a third day in a row on Wednesday, fueled by ongoing concerns about demand, the dollar's strength and expectations for more interest rate hikes by major central banks.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 7.43% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.41% from its previous close of 7.40% on Wednesday.