Bond yields traded lower on Thursday despite GST collection topped the Rs 1-lakh-crore mark for the second straight month in August at Rs 1.12 lakh crore. The tax collections in August on goods sold and services rendered was 30 per cent higher than Rs 86,449 crore collected in August 2020, and 14 per cent higher than Rs 98,202 crore collected in August 2019.
In the global market, U.S. Treasury yields hovered around the unchanged mark on Wednesday in low-volume afternoon trading as the market focused on the government's jobs report due out on Friday. Furthermore, oil prices fell after OPEC+ agreed to keep its policy of gradually returning supply to the market at a time when coronavirus cases around the world are surging and many U.S. refiners, a key source of crude demand, remained offline.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.17% from its previous close of 6.19% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points lower at 5.58% from its previous close of 5.61% on Wednesday.