Bond yields edged lower on Thursday, tracking a fall in U.S. Treasury yields after the Federal Reserve’s policy decision was on expected lines. However, gains were limited with data showing that India's wholesale inflation grew to 3.93 percent during November, higher from 3.59 percent in October, driven by faster rises in prices of food and fuel products.
In the global market, U.S. Treasury yields fell on Wednesday as a report on consumer prices in November fell short of analysts' forecasts, reducing bets on a broad pickup in inflation and supporting the view the Federal Reserve would remain on a gradual rate-hike path. Furthermore, oil prices rose, lifted by a fourth straight weekly fall in U.S. crude inventories, though rising output capped prices well below the 2015 highs reached earlier this week.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.15% from its previous close of 7.18% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.00% from its previous close of 6.99% on Wednesday.