Bond yields traded flat on Thursday amid RBI Bulletin stated that retail inflation is gradually easing, but volatile and elevated food prices are interrupting the path of disinflation. It said global growth was resilient in the first quarter of 2024, and many central banks have pivoted towards a less restrictive monetary policy stance in response to the fall in inflation in their economies.
In the global market, US 10-year treasury yields declined after weak US data bolstered the case for two Fed interest rate cuts this year. Furthermore, oil prices dipped on Wednesday after hitting seven-week highs as summer demand optimism and concerns over escalating conflicts offset an industry report that said U.S. crude inventories unexpectedly rose.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.97% on Wednesday.
The benchmark five-year interest rates were trading flat with its previous close of 7.00% on Wednesday.