Bond yields traded lower on Thursday after Indian manufacturing activity fell back into decline in the month of June, as the intensification of the pandemic and strict containment measures negatively impacted on demand. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - fell to 48.1 in June as against 50.8 in May.
In the global market, Yields on longer-dated U.S. Treasuries fell on Wednesday to their lowest levels in more than a week as the market wound down 2021's second quarter, while the amount of cash flooding into the Federal Reserve's reverse repurchase operation set a new record high as it neared $1 trillion. Furthermore, oil prices traded sideways as investors waited for a decision from key producers on whether they would maintain or ease supply cuts in the second half of the year.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.04% from its previous close of 6.05% on Wednesday.
The benchmark five-year interest rates were trading 2 basis points lower at 5.70% from its previous close of 5.72% on Wednesday.