Bond yields traded higher on Friday as output of eight core industries rose 8 per cent in July 2023 from 4.8 per cent in July 2022. This is due to a low base effect and positive growth in all the eight sectors during the month.
In the global market, U.S. Treasury yields were little changed to slightly lower on Thursday after earlier slipping in the wake of data showing inflation came in line with expectations, while jobless claims fell, suggesting the Federal Reserve will hold rates steady at the September policy meeting. Furthermore, oil prices rose on Thursday, boosted by a large drawdown in U.S. crude inventories and production cuts by OPEC+, and as U.S. data showed slowing inflation in the world’s biggest consumer.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.17% from its previous close of 7.16% on Thursday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.17% from its previous close of 7.15% on Thursday.