Bond yields edged lower on Thursday as India’s industrial production growth measured in terms of the Index of Industrial Production (IIP) slipped to 3-month low of 5 per cent in April 2024, as compared with a revised estimate of 5.4% in March, mainly due to poor show by the manufacturing sector, though mining and power segments performed well.
In the global market, US Treasury yields fell on Wednesday after the Labor Department reported unexpectedly soft inflation data for May. Furthermore, oil settled higher on Wednesday as ongoing tensions in the Middle East lent support to prices, but news that interest rate cuts could start as late as December capped gains, following the Federal Reserve's statement concluding its two-day meeting.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.99% from its previous close of 7.01% on Wednesday.
The benchmark five-year interest rates were trading 4 basis points lower at 7.01% from its previous close of 7.02% on Wednesday.