Bond yields traded lower on Thursday after Economic Affairs Secretary Shaktikanta Das said that India is well prepared to deal with the impact of the US Federal Reserve interest rate hike and the end of uncertainties will actually help policy makers in emerging economies.
In the global market, Yields on shorter-dated U.S. Treasuries rose sharply on Wednesday after the Federal Reserve increased its benchmark rate by 0.25 percentage point, its first hike in nearly a decade, signaling confidence in the strength of the domestic economy. Furthermore, Crude futures rose on Thursday recouping some of the losses from the previous session, when they fell sharply after the Federal Reserve raised rates and official figures showed a surprise build in U.S. inventories.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.72% from its previous close at 7.73% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.75% from its previous close at 7.76% on Wednesday.