Bond yields traded lower on Thursday as India, the world's third-largest energy consumer and importer, warned of high oil prices hurting the nascent and fragile global economic recovery.
In the global market, U.S. long-dated Treasury yields rose on Wednesday after a weak auction of 20-year bonds, with the yield curve steepening for a second day and investors paring back aggressive monetary tightening bets from the Federal Reserve. Furthermore, oil prices rose to extend gains from the previous session as U.S. crude and fuel inventories tightened further, with supplies of gasoline hitting a two-year low, pointing to strong demand.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 6.33% from its previous close of 6.37% on Wednesday.
The benchmark five-year interest rates were trading 2 basis points higher at 5.86% from its previous close of 5.84% on Wednesday.