Bond yields traded lower on Thursday, as India’s service sector fell into contraction territory in the month of May, with the intensification of the COVID-19 crisis causing renewed declines in new business and output. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index fell to 46.4 in May from 54.0 in April.
In the global market, Treasury yields were modestly lower on Wednesday, trading in a tight range as investors held off from making big moves ahead of private payrolls data on Thursday and the monthly federal jobs report on Friday. Furthermore, oil prices rose for a third day on expectations for a surge in fuel demand, particularly in the United States and Europe and China, later this year at the same time major producers are maintaining supply discipline.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 5.99% from its previous close of 6.00% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points lower at 5.56% from its previous close of 5.58% on Tuesday.