Bond yields edged lower on Thursday, as traders remain energized with Moody's Investors Service’s statement that the direct cash transfer programme for farmers and tax relief steps for the middle-class will give a fiscal stimulus of about 0.45 percent of GDP, and support growth through increased consumption, though at a fiscal cost.
In the global market, U.S. Treasury yields slipped for a second straight session on Wednesday, trading in narrow ranges, as investors continued to factor in the Federal Reserve's dovish bent on interest rates, while concerns about slowing growth in Germany added pressure. Furthermore, Oil prices fell after U.S. crude inventories rose and as production levels in the country held at record levels, but OPEC-led supply cuts and a crisis in Venezuela supported markets.
Back home, the yields on new 10 year Government Stock were trading 8 basis points lower at 7.49% from its previous close of 7.57% on Wednesday.
The benchmark five-year interest rates were trading 7 basis points lower at 7.30% from its previous close of 7.37% on Wednesday.