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Bond yields trade flat on Wednesday

03 Jul 2024 Evaluate

Bond yields traded flat on Wednesday after the seasonally adjusted HSBC India Services PMI Business Activity Index rose to 60.5 in June from 60.2 in May. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 60.9 in June as against 60.5 in May.

In the global market, treasury yields fell on Tuesday after Federal Reserve Chair Jerome Powell cited progress on squashing stubborn inflation. Furthermore, oil prices were little changed on Tuesday, trading near two-month highs reached in the previous session on expectations of rising demand during the summer driving season and possible supply disruptions from Hurricane Beryl. 

Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 7.00% on Tuesday.

The benchmark five-year interest rates were trading 1 basis point lower at 7.01% from its previous close of 7.02% on Tuesday.

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