Bond yields were trading lower as global oil prices slumped to five-year lows. While, caution ahead of key macroeconomic data, i.e, consumer price index (CPI)-based inflation and Index of Industrial Production (IIP) data on Friday kept yields in a tight range. While, the street expects CPI inflation to be around 4.4% in November compared with 5.52% in October, IIP is expected to grow 2.7% in October compared with 2.5% in September. Markets will also be watching trade deficit data for November, which can be announced any time this month.
On the global front, U.S. Treasuries gained on Wednesday after a $21 billion government auction of reopened 10-year notes saw strong demand, helped by growing risk aversion as stock and oil prices slide. Meanwhile, brent crude ticked higher on Thursday but remained below $65 per barrel, not far from a five-year low hit in the previous session, with the market's bearish tone largely intact.
Back home, the yields on new 10 year Government Stock 2023 were trading 3 basis points lower at 7.88% from its previous close of 7.91% on Wednesday.
The benchmark five-year interest rate swaps were trading 3 basis points lower at 7.13% from its previous close of 7.16% on Wednesday.