Bond yields edged higher on Thursday as retail inflation based on Consumer Price Index (CPI) fell to a 15-month low of 5.66 per cent in March 2023 and came back to the Reserve Bank of India’s (RBI) comfort level of 6 per cent.
In the global market, U.S. Treasury yields dropped on Wednesday after data showing cooler-than-expected headline inflation for March but elevated core consumer prices, suggesting the Federal Reserve could still raise interest rates at the next policy meeting - but may pause after that. Furthermore, Oil prices rose on Wednesday to their highest in more than a month as cooling U.S. inflation data spurred hopes that the Federal Reserve is getting closer to ending its cycle of interest-rate hikes and cushioned the impact of a small build in U.S. crude oil stocks.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.22% from its previous close of 7.21% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.05% from its previous close of 7.04% on Wednesday.