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Bond yields edge lower on Monday

06 May 2024 Evaluate

Bond yields edged lower on Monday amid report that India’s services sector activity growth eased during the month of April but still one of the strongest growth rates seen in just under 14 years, amid favourable economic conditions, demand strength and rising intakes of new work. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index fell to 60.8 in April from 61.2 in March.

In the global market, U.S. Treasury yields dropped on Friday after April’s jobs report showed weaker-than-expected payrolls growth and an unexpected tick higher in the unemployment rate. Furthermore, oil prices fell on Friday even as the dollar weakened following a weaker-than-expected U.S. jobs report, while data pointing to rising U.S. supplies reined in bets for tighter markets.

Back home, the yields on new 10 year Government Stock were trading 3 basis point lower at 7.11% from its previous close of 7.14% on Friday.

The benchmark five-year interest rates were trading 2 basis point lower at 7.13% from its previous close of 7.15% on Friday.

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