Bond yields edged higher on Thursday as Fitch Ratings stated that the inclusion of certain Indian sovereign bonds in key emerging-market bond indices managed by JP Morgan will support a diversification of the investor base for Indian government securities.
In the global market, U.S. Treasury yields were little changed to modestly higher on Wednesday, as traders took a breather after a months-long sell-off fueled by expectations that the Federal Reserve will keep rates high for some time to bring inflation down to its 2% target. Furthermore, oil prices surged 3% on Wednesday to the highest settlement in 2023, after a steep drop in U.S. crude stocks compounded worries of tight global supplies.
Back home, the yields on new 10 year Government Stock were trading 5 basis points higher at 7.22% from its previous close of 7.17% on Wednesday.
The benchmark five-year interest rates were trading 6 basis points higher at 7.24% from its previous close of 7.18% on Wednesday.