Bond yields were trading sideways as caution prevailed ahead of RBI’s second quarter monetary policy review on October 30, while trading volumes were thin in a holiday-shortened week. Forex and Money Market will remain closed for trade on Oct 26, on account of Public Holiday.
On the global front, US Treasuries stabilized in Asian trade on Thursday, having slipped slightly the previous day after the Federal Reserve held its course on monetary policy. Meanwhile, Brent crude futures rose above $108 on Thursday as positive economic data out of the world's top oil consumer, the United States, revitalized hopes of a recovery in demand growth, although a worsening outlook for Europe capped gains.
The yields on 10-year benchmark 8.79% - 2021 were trading 1 basis point lower at 8.13% from its previous close of 8.14%.
The benchmark five-year interest rates were trading 1 basis point lower at 6.97% from its previous close of 6.98%.
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