Bond yields edged lower on Thursday, as traders took support from International Monetary Fund’s (IMF) report that India’s debt is lower than the best or emerging market economies in the world, India’s debt was substantially less than the global debt as percentage of world Gross Domestic Product (GDP).
In the global market, US Treasury yields fell late on Wednesday in a flight to quality as investors snapped up government bonds in the midst of a sharp sell-off in US stocks. Furthermore, Oil prices fell to two-week lows as they extended big losses from the previous session amid a rout in global stock markets, with oil also taking a hit from an industry report showing U.S. crude inventories rose more than expected.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 8.01% from its previous close of 8.03% on Wednesday.
The benchmark five-year interest rates were trading flat at its previous close at 8.01% on Wednesday.