Bond yields edged lower on Thursday owing to value buying by investors on hopes that easing crude oil prices would lower inflation, boosting the prospects of an interest rate cut by the Reserve Bank of India in August. However, investors remained cautious as Federal Reserve Chairwoman Janet Yellen told the House Financial Services Committee that she expects to raise interest rates at some point this year.
In the global markets, U.S. Treasury prices rallied on Wednesday as concerns about global growth sparked safety buying, even as U.S. Federal Reserve Chair Janet Yellen repeated that an interest rate hike is likely this year. Furthermore, Oil prices rose on Thursday morning after data showed that U.S. crude inventories dropped and refinery demand was high.
Back home, the yields on new 10 year Government Stock were trading1 basis point lower at 7.83% from its previous close of 7.84% on Wednesday.
The benchmark five year yields were also trading flat at its previous close of 8.01% on Wednesday.