Bond yields edged higher on Tuesday, as India's manufacturing sector activity improved in the month of April, as factory orders and production rose at the strongest rates in 2023 so far, more jobs were created and companies stepped up input purchasing owing to stock-replenishment efforts. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) surged to 57.2 in April from 56.4 in March.
In the global market, U.S. Treasury yields moved higher on Monday after JPMorgan said it would buy most of the assets of First Republic Bank, the troubled lender seized by regulators at the weekend. Furthermore, oil prices dropped by a dollar a barrel on Monday after weak economic data from China and expectations of another U.S. interest rate hike outweighed support from OPEC+ supply cuts that take effect this month.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.12% from its previous close of 7.11% on Friday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.01% from its previous close of 7.03% on Friday.