Bond yields edged higher on Thursday amid India’s services sector expanded at its fastest pace in over 13 years in the month of July, aided by substantial improvement in international demand. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index jumped at 62.3 in July from 58.5 in June.
In the global market, Treasury yields ticked up on Wednesday, as investors digested an unexpected downgrade of the United States' top-tier sovereign credit rating and private payrolls data that pointed to U.S. labor market resilience. Furthermore, Oil prices settled down on Wednesday despite a historic drop in U.S. crude stocks, as traders derisk following the downgrade of the U.S. government's top credit by a major ratings agency.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.18% from its previous close of 7.15% on Wednesday.
The benchmark five-year interest rates were trading 4 basis points higher at 7.17% from its previous close of 7.13% on Wednesday.