Bond yields edged higher on Thursday, as were on the sidelines with RBI Governor Urjit Patel flagging the risks to macroeconomic stability from a potential currency war in the wake of rising global trade tensions.
In the global market, U.S. Treasury note's yield reached its highest in 2-1/2 months on Wednesday, breaking above 3 percent after the government said it intended to boost borrowing in the bond market in the coming quarter to fund spending and debt obligations. Furthermore, oil prices rose, recouping a portion of the losses of the last two days that were driven by reports showing surprise gains in US inventories of crude, along with mounting concern over trade friction between the US and China.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.72% from its previous close of 7.70% on Wednesday.
The benchmark five-year interest rates were trading flat at its previous close at 7.81% on Wednesday.