Bond yields dropped on Thursday after the Reserve Bank of India (RBI) announced bond purchases of up to 100 billion rupees ($1.50 billion) to infuse liquidity into the banking system. The central bank will conduct the bond purchases via open market operations (OMO) on December 7, 2015.
On the global front, prices of U.S. Treasuries were little changed on Wednesday after Federal Reserve Chair Janet Yellen said she was ‘looking forward’ to a U.S. interest rate hike. Further, Crude prices turned positive after falling more than 4% a day earlier on an unexpected rise in U.S. stockpiles, and as traders dismissed the possibility of OPEC stemming oversupply by cutting production.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.70% from its previous close at 7.73% on Wednesday.
The benchmark five-year interest rates were trading 6 basis points lower at 7.73% from its previous close at 7.79% on Wednesday.
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