Bond yields traded lower on Thursday as investors turned optimistic with RBI's plan to buy bonds worth up to 150 billion rupees ($2.23 billion) through an open market operation (OMO) on March 17. Investors got support with a hope that the RBI may cut the policy rate any time between now and a scheduled monetary policy review on April 5.
In the global market, U.S. Treasury yields fell across the board on Wednesday after the Federal Reserve, as expected, held interest rates steady while revising its outlook for interest rate increases to just two by the end of the year. Furthermore, Oil futures rose in Asian trade on Thursday, adding to strong gains in the previous session after the world's biggest suppliers firmed up plans to meet to discuss an output freeze.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.55% from its previous close at 7.57% on Wednesday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.72% from its previous close at 7.74% on Wednesday.