Bond yields edged lower on Thursday, as the monetary policy committee (MPC) of the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points (bps) to 5.75 percent.
In the global market, US Treasury yields fell on Wednesday, with two-year yields hitting their lowest since December 2017 in the wake of a report that showed private domestic jobs growth decelerated in May to its weakest in over nine years. Furthermore, Oil prices hovered around their lowest levels since January as markets remain under pressure from rising US supply and stalling demand amid an economic slowdown.
Back home, the yields on new 10 year Government Stock were trading 12 basis points lower at 6.90% from its previous close of 7.02% on Tuesday.
The benchmark five-year interest rates were trading 16 basis points lower at 6.72% from its previous close of 6.88% on Tuesday.