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Bond yields trade lower on Thursday

11 Aug 2016 Evaluate

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.