Bond yields traded lower on Thursday as despite the inflation based on Wholesale Price Index (WPI) stayed in negative territory for the second consecutive month at (-) 0.58% in July 2025, as prices of food articles and fuel saw deflation, even though prices of manufactured items increased.
In the global market, U.S. Treasury yields were lower on Wednesday as investors studied the implications of the latest inflation data and considered the likely impact of higher tariffs on the U.S. economy. Furthermore, oil prices were little changed on Wednesday after falling in the previous session after an industry report showed US crude stockpiles climbed last week illustrating the end of the seasonal summer demand period is nearing.
Back home, the yields on new 10 year Government Stock were trading 6 basis points lower at 6.42% from its previous close of 6.48% on Wednesday.
The benchmark five-year interest rates were trading 2 basis points lower at 6.27% from its previous close of 6.29% on Wednesday.
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