Bond yields edged higher on Thursday after Reserve Bank of India (RBI) kept repo rate unchanged at 6.25%, sounding hawkish on inflation and disappointing investors.
In the global market, U.S. Treasury yields fell, with the 30-year yield on track for its biggest drop in more than three months, as disappointing overseas economic data reduced optimism about global growth ahead of a European Central Bank meeting. Furthermore, Oil prices edged up, supported by a weaker dollar ahead of next week's Federal Reserve meeting and by a drawdown in U.S. crude stocks.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.43% from its previous close of 6.41% on Wednesday.
The benchmark five-year interest rates were trading 2 basis points higher at 6.43% from its previous close of 6.41% on Wednesday.