Bond yields traded flat on Thursday, as traders remained cautious with data showing that India’s wholesale price index (WPI) inflation for the month of August 2017 jumped to 3.24% as compared to 1.88% in July 2017 and 1.09% in the similar period of the previous year, due an increase in foods articles and vegetable prices.
In the global market, U.S. Treasury yields rose on Wednesday with 10-year yield reaching a 2-1/2 week high as investors reduced their bond holdings to make room for this week's government and corporate debt supply. Furthermore, Oil prices eased, but held on to most of their gains in the previous session when the market was buoyed by a forecast for firmer global oil demand by the International Energy Agency.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 6.59% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.54% from its previous close of 6.53% on Wednesday.