Bond yields edged higher on Thursday, as investors remained on the sidelines on a private report stating that Indian financial markets’ liquidity position has worsened with cash deficit widening to about Rs 1.4 lakh crore this week compared with a small surplus in first week of October.
In the global market, US benchmark 10-year Treasury yields fell to three-week lows on Wednesday, weighed down by weakness in stocks and ongoing political uncertainty ahead of the US congressional elections. Furthermore, oil prices fell by around one percent, coming under pressure from sharp selloffs in global stock markets, with US stocks posting the biggest daily decline since 2011 to wipe out the year's gains.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.88% from its previous close of 7.87% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.88% from its previous close of 7.87% on Wednesday.