Bond yields edged lower on Thursday, as traders remain optimistic with a report that Consumer Sentiment Index has rebounded in January on account of easing inflation, increasing liquidity and stabilising US-China trade war. India Primary Consumer Sentiment Index has risen over the previous month of November, signalling rising optimism going ahead.
In the global market, US Treasury yields rose on Wednesday as stronger-than-forecast results from two major US banks lifted Wall Street to one-month highs and British Prime Minister Theresa May's win of a confidence vote, reducing safety bids for US government debt. Furthermore, Oil prices dipped as US crude production quickly approached an unprecedented 12 million barrels per day (bpd) just as worries about weakening demand emerge.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.55% from its previous close of 7.56% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.36% from its previous close of 7.37% on Wednesday.