Bond Yields Trend Higher In Line With Global Markets
Domestic yields move up after a jump in US yields in the overnight session
Domestic bond yields moved up marginally on Thursday in line with an uptick in global yields.
US treasury yields jumped sharply overnight after comments from the Federal Reserve chair Janet Yellen. In her comments, Yellen sound upbeat about the prospects of the US economy. With the US economy close to full employment and inflation headed toward the Federal Reserve's 2 percent goal, Yellen said that it makes sense to gradually increase interest rates.
The US 10-year treasury is trading at close to 2.44 percent.
Domestic markets took a cue from global markets and saw yields move up in trade.
Foreign portfolio investors (FPIs) bought debt worth Rs 564.86 crore on Wednesday, showed data from the National Securities Depository Ltd. FPI have sold debt worth Rs 4144.5 crore over the last six sessions till Wednesday.
For the day, the benchmark 10 year bond yield ended at 6.47 percent compared to the previous close of 6.45 percent. It touched a high and low of 6.48 percent and 6.45 percent respectively.
