Bond yields traded higher on Friday despite India’s industrial production output, measured in terms of the Index of Industrial Production (IIP), decelerated to 4.8 per cent year-on-year in July 2024, mainly due to poor performance of the manufacturing and mining sectors.
In the global market, U.S. Treasury yields were higher on Thursday as investors reacted to the latest economic data and considered the outlook for interest rates. Furthermore, Oil prices rose over 2% on Thursday as producers assessed the impact on output in the U.S. Gulf of Mexico after Hurricane Francine tore through offshore oil-producing areas before being downgraded to a tropical storm.
Back home, the yields on new 10 year Government Stock were trading 9 basis points higher at 6.90% from its previous close of 6.81% on Thursday.
The benchmark five-year interest rates were trading 10 basis points higher at 6.81% from its previous close of 6.71% on Thursday.
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