Bond yields edged lower on Thursday, as traders took encouragement with a report that India has taken various measures to bolster the rural economy but the efficacy of the schemes would depend upon their implementation.
In the global market, Benchmark 10-year Treasury yields fell to 15-month lows on Wednesday as the New Zealand and European central banks adopted a dovish tone on interest rates and investors worried about a global recession. Furthermore, oil prices fell, extending losses into a second straight session, after widely watched data showed a surprising increase in US stocks.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.30% from its previous close of 7.33% on Wednesday.
The benchmark five-year interest rates were trading 4 basis points lower at 6.91% from its previous close of 6.95% on Wednesday.