Bond yields edged lower on Wednesday amid report stating that the net foreign direct investment (FDI) in India -- inflows minus the outflows -- dropped sharply by 62.17 per cent to $10.58 billion in the financial year ended March 31, 2024 (FY24) from $27.98 billion in the previous year, reflecting higher repatriation of capital. This is the lowest amount of net FDI into the country since 2007.
In the global market, U.S. Treasury yields dipped on Tuesday amid the doldrums ahead of a holiday weekend and a lack of market catalysts to fuel conviction one way or the other. Furthermore, oil prices settled 1% lower on Tuesday as lingering U.S. inflation looked likely to keep interest rates higher for longer, weighing on fuel demand.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.04% from its previous close of 7.07% on Tuesday.
The benchmark five-year interest rates were trading flat with its previous close of 7.06% on Tuesday.