Bond yields traded lower on Thursday as sentiment remains buoyant after the central bank's open market operations. Reserve Bank of India has conducted an overnight variable rate repo auction for a notified amount of Rs 100 billion on August 11, 2016.
In the global market, U.S. Treasury prices rose on Wednesday after a strong 10-year note auction that reinforced investor appetite for safe-haven U.S. government debt amid limited economic data and rising concern about the effectiveness of global central bank policy. Furthermore, Oil prices fell as a build in U.S. crude inventories and record Saudi Arabian production weighed on markets.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.08% from its previous close at 7.10% on Wednesday.
The benchmark five-year interest rates were trading flat from its previous close at 7.02% on Wednesday.