Bond yields traded lower on Thursday as investors remained optimistic after RBI Governor Raghuram Rajan sprang a surprise by announcing a biggest-than-expected interest rate cut of 0.50 per cent to 6.75, lowest in four-and-half-years to boost country’s economic growth. Some support also came with IMF chief Christine Lagarde's statement that India remains a bright spot in the world economy.
In the global market, U.S. Treasuries prices slipped on Wednesday as Wall Street rallied on confidence in the U.S. economy after data showed U.S. private-sector employers added 200,000 jobs. Furthermore, Crude oil prices edged up in early Asian trading on Thursday as demand was estimated to have remained strong despite slowing economic growth in Asia, and as Russian and western air campaigns in Syria worried markets.
ack home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.53% from its previous close of 7.54% on Wednesday.
The benchmark five-year interest rates were trading steady from its previous close at 7.62% on Wednesday.