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Bond yields edge higher on Friday

09 Feb 2024 Evaluate

Bond yields edged higher on Friday after the Reserve Bank of India (RBI) in its latest ‘Industrial outlook survey of the manufacturing sector for Q3:2023-24’ has said that manufacturing companies reported positive demand conditions during Q3:2023-24 as reflected in their assessment of production, capacity utilisation, pending orders, employment and overall business situation but they were less sanguine when compared to the previous survey round.

In the global market, U.S. Treasury yields rose Thursday as investors assessed robust jobs data and recent remarks from Federal Reserve officials that dashed hopes for a March rate cut. Furthermore, Oil jumped more than 2% Thursday as Middle East tensions kept traders on edge and US production forecasts signaled tighter-than-anticipated supply for 2024.

Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.10% from its previous close of 7.08% on Thursday.

The benchmark five-year interest rates were trading 5 basis points higher at 7.07% from its previous close of 7.02% on Thursday.

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