Bond yields edged higher on Thursday, after Indian government permitted seven companies to raise Rs 40,000 crore via tax free bonds. The ceiling coupon rate for AAA rated issuer of tax free bonds has fixed 55 basis points below the government bond yield for retail investors and for other investors 80 basis are been fixed.
In the global markets, U.S. Treasury debt prices rallied on Wednesday, extending gains as investors grew more risk averse on new signs that Federal Reserve policymakers may be hesitant to start raising U.S. interest rates. Furthermore, Crude oil prices bounced on Thursday following losses earlier in the week, with Chinese stocks picking up after the government put in place new efforts to stop a rout that had knocked off a third of the country's share market value.
Back home, the yields on 10 year Government Stock was trading 1 basis point higher at 7.79% from its previous close of 7.78% on Wednesday.
The benchmark five year yields were trading down by 1 basis point higher at 7.96% from its previous close of 7.95% on Wednesday.