Bond yields edged higher on Thursday, on account of lower demand from corporates and banks. Some concern also came with report that Foreign Direct Investment (FDI) to India declined to $40 billion in 2017 from $44 billion in the previous year. FDI inflows to South Asia contracted by 4% to $52 billion, owing to a drop in inflows to India.
In the global market, U.S. Treasury yields rose on Wednesday, with the 10-year yield hitting a 1-1/2-week high on worries that the European Central Bank would end the expansion of its massive bond purchase program this year. Furthermore, Oil prices rose to shake off some of the previous session's losses, supported by plunging exports by OPEC-member Venezuela.
Back home, the yields on new 10 year Government Stock were trading 5 basis points higher at 7.97% from its previous close of 7.92% on Wednesday.
The benchmark five-year interest rates were trading 7 basis points higher at 8.00% from its previous close of 7.93% on Wednesday.
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