Bond yields trade lower on Thursday, on sustained demand from corporates and banks. However, gains remained capped after the Reserve Bank of India announced an unscheduled issuance of short-term cash management bills.
In the global market, long-dated U.S. Treasury prices weakened on Wednesday as central banks in Europe were deemed to strike a more hawkish tone, even after reports that markets had misinterpreted comments by European Central Bank President Mario Draghi on Tuesday. Furthermore, Crude oil rose for a sixth straight session to its highest since June 19 on a decline in U.S. output, but ongoing worries about global oversupply continued to drag.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.49% from its previous close of 6.50% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.72% from its previous close of 6.71% on Wednesday.