Bond yields traded higher on Thursday as commerce and industry ministry has said foreign direct investment (FDI) equity inflows into the country grew by 112 per cent in the first four months (April-July) of 2021-22 ($20.42 billion) compared to the year ago period ($9.61 billion). Total FDI inflow rose to $27.37 billion during the first four months of 2021-22. In the year-ago period, the same was at $16.92 billion.
In the global market, U.S. Treasury yields see-sawed on Wednesday after the Federal Reserve said it would reduce its monthly bond purchases 'soon' and investors grappled with a timeline that suggested higher interest rates may follow more quickly than expected. Furthermore, Oil prices rose, extending strong gains overnight with fuel demand growing and crude stocks declining as production remains hampered in the U.S. Gulf of Mexico after two hurricanes.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.14% from its previous close of 6.13% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 5.58% from its previous close of 5.59% on Wednesday.
