Bond yields edged marginally lower on Thursday despite report stating that maintaining consistency in attracting foreign investment inflows, India has received a total foreign direct investment (FDI) inflow of $70.9 billion in the financial year 2023-24. India received the highest FDI of $6 billion in October 2023 followed by $5.9 billion in January 2024.
In the global market, U.S. 10-year Treasury yields rebounded from a two-month low on Wednesday but remained lower on the day after data showed that the U.S. services sector snapped back into growth mode in May after a short-lived contraction the month before. Furthermore, Oil prices rose on Wednesday after five sessions of consecutive losses, despite the surprise increase in US crude stocks.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.01% from its previous close of 7.02% on Wednesday.
The benchmark five-year interest rates were trading 4 basis points lower at 7.05% from its previous close of 7.09% on Wednesday.