Bond yields traded lower on Thursday as investors expect robust demand at the weekly debt auction, after the recent rally in prices. Meanwhile, investors got some comfort with Parliamentary Affairs Minister Venkaiah Naidu’s statement that the government will seek to ensure that the bill on a pan-India goods and services tax (GST) will be passed in the upcoming session of parliament, scheduled from July 18 to August 12.
In the global market, US Treasury debt prices fell on Wednesday, with the 30-year yield flirting with all-time lows, as investors reduced bond holdings on a further rebound in stocks and commodities following a rout triggered by Britain's vote to leave the European Union. Furthermore, oil prices after a surge fell on Thursday, with Brent futures struggling to defend $50 per barrel as fears over strike outages in Norway faded and as Nigeria's production improved.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.43% from its previous close at 7.44% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.37% from its previous close at 7.38% on Wednesday.