Bond yields traded higher on Thursday, on account of lower demand from corporates and banks. Some cautiousness also came with a private report stating that the government decision to significantly increase minimum support price (MSP) for several kharif crops to boost farmers’ incomes could push inflation upwards and widen the fiscal deficit.
In the global market, Oil prices fell after US President Donald Trump sent a strident tweet demanding that OPEC cut prices for crude.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.86% from its previous close of 7.85% on Wednesday.
The benchmark five-year interest rates were trading flat at its previous close at 8.01% on Wednesday.