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Bond yields trade lower on Thursday

04 Jul 2024 Evaluate

Bond yields trade lower on Thursday despite S&P Global Ratings Director, Sovereign Ratings, YeeFarn Phua, has expressed optimism over the country’s rating upgrade and said that for India a sovereign rating upgrade is possible in the next 24 months if the central government is able to prudently manage its finances and bring down fiscal deficit to 4 per cent of Gross Domestic Product (GDP).

In the global market, treasury yields finished lower on Wednesday for a second straight session after the Institute for Supply Management's index of services businesses produced its lowest reading since the height of the pandemic in May 2020. Furthermore, oil prices steadied on Wednesday after trading higher on a bigger than expected drawdown in US crude stockpiles while economic headwinds from China and the euro zone capped gains.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.99% from its previous close of 7.00% on Wednesday.

The benchmark five-year interest rates were trading flat with its previous close of 7.00% on Wednesday.

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