Bond yields edged lower on Thursday on rising speculation that the Reserve Bank of India will lower its repo rate by 25 basis points to 6 percent in its next month monetary policy meeting.
In the global market, U.S. Treasury yield curve flattened on Wednesday with yields on shorter-dated maturities little changed while yields on longer-dated ones fell as U.S. producer prices and industrial output data showed inflation could be growing more slowly than expected. Furthermore, crude oil futures dropped after official inventory reports indicated a larger-than-expected build in U.S. oil stocks.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.43% from its previous close of 6.45% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points lower at 6.41% from its previous close of 6.44% on Wednesday.