Bond yields edged marginally lower on Thursday as investor sentiment remains subdued amid growing possibility of a U.S. Federal Reserve rate increase next week.
In the global market, U.S. Treasury yields jumped on Wednesday, with the two-year yield hitting its highest levels in more than 7-1/2 years, as a strong gain in U.S. private-sector jobs in February cemented expectations that the Federal Reserve would raise interest rates next week. Furthermore, U.S. oil prices rose in Asian trade on as high compliance with OPEC's production cuts lent support, although U.S. record crude inventories weigh on market sentiment.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.85% from its previous close of 6.86% on Wednesday.
The benchmark five-year interest rates were trading flat at its previous close at 7.08% on Wednesday.