Bond yields traded lower on Thursday on expectation that central bank will cut rates. Sentiments got a boost with chief economic adviser at the finance ministry Arvind Subramanian’s comments that the Indian economy is still expected to grow around 8 percent in the fiscal year to March 2016, after economic growth slowed to 7 percent in the quarter to June. International Monetary Fund (IMF) too has said that near-term growth prospects remain favourable in India but some macroeconomic imbalances still exist.
In the global market, U.S. safe-haven Treasuries prices slipped on Wednesday on greater risk appetite, with long-dated prices falling the most on continued speculation of foreign central bank selling. Furthermore, Oil fell on Thursday on an unexpected build in U.S. crude stocks and a stronger dollar, but a recovery in Asian shares after Wall Street posted a near 2-percent gain overnight helped support prices.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.74% from its previous close at 7.75% on Wednesday.
The benchmark five year yields were trading 1 basis point lower at 7.87% from its previous close at 7.88% on Wednesday.