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Bond yields trade higher on Friday

30 Aug 2024 Evaluate

Bond yields traded higher on Friday as the retail inflation rates for farm and rural workers eased in the month of July, with the All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) falling to 6.17% and 6.20%, as compared to 7.43% and 7.26% in July 2023, respectively. The corresponding figures for June 2024 were 7.02% for CPI-AL and 7.04% for CPI-RL.

In the global market, Treasury yields rose Thursday after the latest batch of U.S. economic reports reassured investors that the U.S. labor market remained in solid shape. Furthermore, Oil futures finished higher on Thursday, finding some support after posting back-to-back session declines, as discord in Libya continued to limit supply from the OPEC producer.

Back home, the yields on new 10 year Government Stock were trading 12 basis points higher at 6.98% from its previous close of 6.86% on Thursday.  

The benchmark five-year interest rates were trading 11 basis points higher at 6.88% from its previous close of 6.77% on Thursday.

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