Bond yields edged lower on Thursday, on sustained demand from corporates and banks. Some support also came with an ASSOCHAM study stating that Industry is expected to contribute $ 280 billion to India's GDP in eight to nine years due to positive fallout of the Goods and Services Tax (GST) as structural changes in the ease of doing business will propel growth.
In the global market, U.S. Treasury yields edged lower on Wednesday as traders remained concerned about weak U.S. factory orders data, reversing a jump on Federal Reserve meeting minutes, while holding near recent peaks on views that global central bank policy was turning more hawkish. Furthermore, Oil prices nudged higher on strong demand in the United States, but analysts cautioned that oversupply would continue to drag on markets.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.52% from its previous close of 6.55% on Wednesday.
The benchmark five-year interest rates were trading flat at its previous close at 6.75% on Wednesday.