Bond yields edged lower on hopes of a rate cut in the next monetary policy on the back of favourable macroeconomic numbers. India's retail inflation fell to 3.78% in July from 5.40% in the month before and the growth in factory output accelerated to 3.8% in June from 2.7% in the previous month.
In the global market, U.S. Treasury debt prices fell late on Wednesday, surrendering gains from a safety-bid rally ignited by China allowing its currency to decline, while Wall Street bounced back from sharp losses. Furthermore, Oil prices were steady early on Thursday, supported by lower U.S. stockpiles and a firm demand outlook, but worries over China's economy continued to weigh.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.76% from its previous close of 7.79% on Wednesday.
The benchmark five year yields were trading 3 basis points lower at 7.90% from its previous close of 7.93% on Wednesday