Bond yields edged higher on Thursday as United Nations Conference on Trade and Development (Unctad) showed that Foreign Direct Investment (FDI) flows into India rose by 10 per cent to $49 billion in 2022, making it the third largest host country for announced greenfield projects and the second largest for international project finance deals.
In the global market, U.S. Treasury yields were mostly higher on Wednesday after a softer-than-expected reading on U.S.-made goods and the minutes from the Federal Reserve’s June policy meeting did little to alter expectations on the path of rate hikes. Furthermore, U.S. crude oil gained about 3% on Wednesday, narrowing the price gap with global benchmark Brent in a post-holiday response to supply cuts announced on Monday by Saudi Arabia and Russia.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 7.14% from its previous close of 7.10% on Wednesday.
The benchmark five-year interest rates were trading 4 basis points higher at 7.11% from its previous close of 7.07% on Wednesday.