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Bond yields trade higher on Tuesday

01 Oct 2024 Evaluate

Bond yields traded higher on Tuesday despite HSBC final India Manufacturing Purchasing Managers' Index, compiled by S&P Global, fell to 56.5 last month from 57.5 in August - the weakest since January - and slightly below a preliminary estimate of 56.7. Growth in India's manufacturing industry cooled to an eight-month low in September as solid demand and output eased slightly.

In the global market, U.S. Treasury yields advanced on Monday as investors considered the state of the economy and outlook for inflation after the latest key data release. Furthermore, Oil prices rose slightly on Monday due to concerns over potential supply disruptions from the Middle East. 

Back home, the yields on new 10 year Government Stock were trading 10 basis points higher at 6.85% from its previous close of 6.75% on Monday.

The benchmark five-year interest rates were trading 11 basis points higher at 6.77% from its previous close of 6.66% on Monday.

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