Bond yields edged lower on Thursday, as lower oil prices and strength in the rupee following Fed chair’s comments indicating slower pace of rate hikes added to the positive sentiment.
In the global market, yields on shorter-dated US government bonds fell on Wednesday afternoon, steepening the yield curve, after Federal Reserve Chair Jerome Powell delivered a speech in which he signaled that an end to the bank's interest-rate hike cycle may be closer than previously suggested. Furthermore, Oil prices climbed 1 percent, clawing back some ground from losses in the previous session, but an increase in US crude inventories and uncertainty in the run to an OPEC meeting next week kept markets under pressure.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 7.60% from its previous close of 7.64% on Wednesday.
The benchmark five-year interest rates were trading flat at its previous close at 7.52% on Wednesday.