Bond yields traded lower on Thursday even after bank credit rose by 6.67 per cent to Rs 109.57 lakh crore and deposits by 9.34 per cent to Rs 155.95 lakh crore in the fortnight ended September 24, 2021. In the previous fortnight ended September 10, 2021, bank credit had risen by 6.7 per cent and deposits by 9.32 per cent.
In the global market, Yields on the shortest end of the U.S. Treasury curve tumbled on Wednesday after the Senate's top Republican said his party would support an extension of the federal debt ceiling into December, a move that would avert a historic default later this month. Furthermore, oil prices dropped for a second session, under pressure from an unexpected rise in U.S. crude stocks that raised concerns over demand after prices rallied to multi-year highs.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.26% from its previous close of 6.27% on Wednesday.
The benchmark five-year interest rates were trading flat with its previous close of 5.79% on Wednesday.