Bond yields edged lower on Thursday, on sustained demand from corporates and banks. However, gains were limited as investors preferred to remain on sidelines ahead of key economic data -- February IIP and March CPI, to be announced after the market hours.
In the global market, U.S. Treasury yields declined on escalating geopolitical tensions after President Donald Trump warned Russia of imminent military action in Syria over a suspected poison gas attack. Furthermore, oil markets remained tense on concerns of a military escalation in Syria, although prices remained some way off Wednesday's highest since late 2014 as bulging American supplies weighed.
Back home, the yields on new 10 year Government Stock were trading 7 basis points lower at 7.47% from its previous close of 7.54% on Wednesday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.35% from its previous close of 7.37% on Wednesday.