Bond yields edged lower on Thursday amid India’s inflation based on wholesale price index (WPI) remained in the negative territory for the fifth straight month in August 2023 at (-) 0.52% as against (-) 1.36% recorded in July 2023. The negative rate of inflation in August is primarily due to fall in prices food products.
In the global market, U.S. Treasury yields held steady on Wednesday after crucial inflation data appeared to remain on its downward path and fortified expectations that the Federal Reserve will let interest rates stand, for now. Furthermore, oil prices edged lower on Wednesday, after earlier hitting a 10-month high, as a surprise build in U.S. crude inventories offset expectations of tight crude supply for the rest of the year.
Back home, the yields on new 10 year Government Stock were trading 7 basis points lower at 7.10% from its previous close of 7.17% on Wednesday.
The benchmark five-year interest rates were trading 5 basis points lower at 7.09% from its previous close of 7.15% on Wednesday.