Bond yields were trading flat on Friday amid report that India’s services sector growth eased in the month of January but signalled an eighteenth successive monthly rise in output, amid favourable demand conditions and ongoing increases in new work. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index eased to 57.2 in January from 58.5 in December. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- fell to 57.5 in January from 59.4 in December.
In the global market, U.S. Treasury yields held steady Thursday as investors digested the Federal Reserve’s interest rate decision and assessed the outlook for monetary policy. Furthermore, Oil prices were steady on Thursday after tumbling in the previous session as a weaker dollar boosted sentiment, though looming sanctions on Russian oil products added uncertainty over supply.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 7.29% on Thursday.
The benchmark five-year interest rates were trading 4 basis points higher at 7.19% from its previous close of 7.15% on Thursday.