Bond yields edged higher on Thursday, on account of lower demand from corporates and banks. However, losses remained capped as some support came with the report stating that India’s direct tax collections for the last financial year crossed the Rs 10 lakh crore mark, registering an increase of 18 per cent over the previous fiscal.
In the global market, U.S. Treasury yields held at lower levels on Wednesday after minutes of the Federal Reserve's May meeting showed that most Fed policymakers thought it likely another interest rate increase would be warranted 'soon' if the U.S. economic outlook remains intact. Furthermore, Oil prices fell, pulled down by expectations that OPEC members could step up production in the face of worries over supply from both Venezuela and Iran.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.87% from its previous close of 7.85% on Wednesday.
The benchmark five-year interest rates were trading 5 basis points higher at 7.87% from its previous close of 7.82% on Wednesday.