Bond yields traded higher on Thursday after the report that the goods and services tax (GST) is set to miss its April 1, 2016 deadline as Union Cabinet on Wednesday decided not to call a special parliament session to pass the Constitutional Amendment Bill in the wake of stiff opposition from the Congress party
In the global market, U.S. Treasury yields fell on Wednesday as higher yields lured fund managers and other investors back to the market and after an auction of new10-year notes saw solid demand. Furthermore, Crude oil prices fell on Thursday as weak Japanese and Chinese economic data fuelled concerns that low levels of investment could further erode already slow growth in Asia.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.78% from its previous close at 7.76% on Wednesday.
The benchmark five year yields were trading 1 basis point higher at 7.91% from its previous close at 7.90% on Wednesday.