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Bond yields trade lower on Wednesday

06 Dec 2023 Evaluate

Bond yields traded lower on Wednesday as India's gross foreign direct investment (FDI) inflows dropped almost 16% in the first six months of FY24 from a year before to $33.12 billion, the second straight fall in the first half of a fiscal.

In the global market, the 10-year U.S. Treasury yield slid below a closely followed level on Tuesday after fresh job openings data hinted at a cooldown in what’s been a tight labor market. Furthermore, Oil prices fell to a near five-month low on Tuesday on a stronger U.S. dollar and demand concerns, putting the market down for a fourth day in a row on doubts over OPEC+ announced voluntary supply cuts last week.

Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.24% from its previous close of 7.26% on Tuesday.

The benchmark five-year interest rates were trading 1 basis point lower at 7.22% from its previous close of 7.23% on Tuesday.