Bond yields edged lower on Thursday, on sustained demand from corporates and banks. However, gains were limited with a recent poll showing that India’s economy will likely grow at its slowest pace in four years this fiscal year, as a currency ban and GST have disrupted business activity and dampened consumer demand.
In the global market, U.S. Treasury yields climbed on Wednesday, boosted by strong U.S. durable goods and new home sales data as well as speculation about President Donald Trump's nominee to head the Federal Reserve. Furthermore, U.S. oil prices extended declines after government data showed a surprise climb in U.S. crude inventories.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.80% from its previous close of 6.81% on Wednesday.
The benchmark five-year interest rates were trading flat at its previous close at 6.71% on Wednesday.