Bond yields edged lower on Thursday despite India’s services sector activity rose to one of strongest rates since mid-2010 in March, as buoyant demand for Indian services created a cascade of positivity for the sector.
In the global market, U.S. Treasury yields slipped from multi-month highs on Wednesday as Federal Reserve Chair Jerome Powell pointed out that recent upbeat data has not changed the overall picture for monetary policy, with interest rates still expected to fall this year. Furthermore, oil prices settled at their highest levels since October on Wednesday on investor concerns about supply disruptions due to conflict in the Middle East, although a jump in U.S. crude oil inventories capped the gains.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.09% from its previous close of 7.10% on Wednesday.
The benchmark five-year interest rates were trading flat with its previous close of 7.10% on Wednesday.
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