Bond yields edged higher on Thursday, tracking overnight gains in crude oil prices. Some concern also came as Fitch Ratings slashed India's GDP growth forecast in the current fiscal to 5.5 per cent saying a large credit squeeze emanating from shadow banks has pushed economic growth to a six year low.
In the global market, U.S. Treasury yields recovered from session lows to close little changed on Wednesday in generally thin trading, as investors consolidated positions amid an overall lack of new catalysts to spur the market in either direction. Furthermore, Oil prices dipped on lingering concerns about a weak demand outlook, after surging more than 2% in the previous session on the back of a surprise draw in U.S. crude stocks.
Back home, the yields on new 10 year Government Stock were trading 14 basis points higher at 6.82% from its previous close of 6.68% on Wednesday.
The benchmark five-year interest rates were trading 11 basis points higher at 6.44% from its previous close of 6.33% on Wednesday.