Bond yields traded higher on Wednesday as inflation based on wholesale price index (WPI) slowed down in the month of July 2024 to 2.04% from 3.36% in June 2024, on account of fall in prices of basic metals, machinery and equipment.
In the global market, Treasury yields fell on Tuesday as a wholesale inflation measure came in softer than expected. Furthermore, oil prices dipped on Tuesday after five straight sessions of gains as OPEC’s move to cut its forecast for demand growth in 2024 tempered fears of supply risks posed by widening conflict in the Middle East.
Back home, the yields on new 10 year Government Stock were trading 9 basis points higher at 6.97% from its previous close of 6.88% on Tuesday.
The benchmark five-year interest rates were trading 11 basis points higher at 6.89% from its previous close of 6.78% on Tuesday.