Bond yields edged lower on Thursday despite India’s final manufacturing PMI showed that manufacturing activity accelerated in January. The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) recovered from an 18-month low of 54.9 in December to 56.5 in January.
In the global market, the 10-year U.S. Treasury yield fell below the key 4% level Wednesday afternoon after Federal Reserve chair Jerome Powell said an interest rate cut wasn’t likely at the March meeting but would likely come later this year. Furthermore, oil prices settled lower on Wednesday, pressured by low economic activity in leading crude importer China and a surprise build in U.S. crude inventories as producers ramped up output following frigid weather this month.
Back home, the yields on new 10 year Government Stock were trading 10 basis points lower at 7.04% from its previous close of 7.14% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points lower at 6.98% from its previous close of 7.02% on Wednesday.
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