Bond yields edged higher on Thursday, as traders remained cautious with a private report that the Gross Domestic Product (GDP) growth will stay flat at 4.5 percent in the October-December 2019. It also said that India faces the risk of getting impacted by coronavirus epidemic economically because of its high reliance on Chinese imports for various goods.
In the global market, U.S. bonds steadied on Wednesday after a volatile trading session that saw the benchmark 10-year Treasury yield hit a record low for a second consecutive day, as investors focused on the economic risks of the spreading coronavirus epidemic. Furthermore, Oil prices fell for a fifth day to their lowest since January 2019 as a growing number of new coronavirus cases outside of China deepened fears that the global economy will slow and lower crude demand.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.38% from its previous close of 6.35% on Wednesday.
The benchmark five-year interest rates were trading 2 basis points higher at 5.89% from its previous close of 5.87% on Wednesday.