Bond yields traded lower after Reserve Bank of India (RBI) has indicated that bank credit growth decelerated to 5.8 percent in Q2 (July- September) of FY21 from 8.9 percent in the year-ago period.
In the global market, most U.S. Treasury yields dipped on Wednesday after a slate of weak economic data including weekly jobless claims, but the 30-year yield received a boost from reports the Federal Reserve at its November policy meeting discussed lengthening the duration of its bond purchases. Furthermore, U.S. oil rose for a fifth day as a surprise drop in crude inventories extended a rally driven by hopes that vaccines would end the coronavirus pandemic and revive fuel demand.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 5.87% from its previous close of 5.88% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.05% from its previous close of 5.04% on Wednesday.