Bond yields edged higher on Thursday, as government decided to make additional borrowing of Rs 50,000 crore this fiscal through dated securities, a move that may put burden on the fiscal deficit target of 3.2 percent of GDP.
In the global market, U.S. government debt yields slipped on Wednesday, after consumer confidence dipped in the month of December and the yield curve continued to flatten. Furthermore, oil prices rose on Thursday, lifted by strong data from top importer China amid thin trading activity ahead of the New Year weekend.
Back home, the yields on new 10 year Government Stock were trading 13 basis points higher at 7.35% from its previous close of 7.22% on Wednesday.
The benchmark five-year interest rates were trading 11 basis points higher at 7.17% from its previous close of 7.06% on Wednesday.
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