Bond yields traded lower on Friday despite India’s foreign exchange reserves in nominal terms (which includes valuation effects) rose by $16.6 billion during April-June 2023, mainly driven by strong Foreign Institutional Investment (FII) flows.
In the global market, U.S. Treasury yields fell from multi-year highs on Thursday, as technical factors kicked in to stall their surge, even as the overall uptrend remained intact as the latest batch of data depicted a generally stable economy, though with some pockets of weakness. Furthermore, Oil futures eased on Thursday, as traders took profits after prices soared to 10-month highs, and some worried that high interest rates may weigh on oil demand.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 7.19% from its previous close of 7.23% on Thursday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.22% from its previous close of 7.25% on Thursday.
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