Bond yields edged higher on Thursday as investors remained jittery ahead of Rs150 billion government debt auction and the U.S. employment report. Adding anxiety among the investors, the International Monetary Fund (IMF) in its report noted that countries such as India have taken steps to reduce non-performing loans, but stressed that additional and timelier actions is needed. The IMF report also warned of rising medium-term risks and said global financial stability will now depend on how well financial institutions adapt to the new era of low growth and low interest rates.
In the global market, U.S. Treasury yields rose on Wednesday after data showing strong hiring in the services sector boosted hiring expectations for Friday's highly anticipated jobs report. Furthermore, oil prices eased but remained near June highs reached the previous session when they were buoyed by a fall in U.S. crude inventories.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.82% from its previous close of 6.80% on Wednesday.
The benchmark five year yields were trading 3 basis points higher at 6.70% from its previous close of 6.67% on Wednesday.