Bond yields traded higher on Thursday as HSBC Flash India Manufacturing PMI index rose from 58.4 in June to 59.2 in July, its highest reading in close to 17-and-a-half years and indicative of a robust improvement in the health of the manufacturing industry.
In the global market, treasury yields moved slightly higher on Wednesday after U.S. Treasury Secretary Scott Bessent eased market jitters over instability at the top of the Federal Reserve, turning attention back to the interest rate outlook. Furthermore, oil prices steadied in early trading on Wednesday after falling for three consecutive sessions as a U.S. trade deal with Japan signaled progress on tariffs and a poll showed U.S. crude stockpiles fell last week, indicating stronger demand.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.32% from its previous close of 6.31% on Wednesday.
The benchmark five-year interest rates were trading 4 basis points higher at 6.10% from its previous close of 6.06% on Wednesday.
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