Bond yields edged lower on Thursday as subdued inflation and negative demonetisation effect to pressurize RBI for rate cut in February.
In the global market, U.S. Treasury yields fell to their lowest levels in two weeks on Wednesday after a well-bid 5-year note auction that primed an appetite for U.S. government debt. Furthermore, oil prices steadied on Thursday after a surprise build in U.S. inventories helped stall an uptrend that has pushed global crude benchmarks to around 18-month highs.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.56% from its previous close of 6.59% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points lower at 6.68% from its previous close of 6.71% on Wednesday.