Bond yields traded flat on Thursday after income tax department said it has issued refunds of over Rs 1.29 lakh crore in 8 months of the current fiscal. This includes Rs 16,691.50 crore worth refunds to 79.70 lakh taxpayers for Assessment Year 2021-22.
In the global market, longer-dated U.S. Treasury yields were little changed after giving up earlier gains on Wednesday as the Omicron coronavirus variant was found in the United States, though short-dated yields stayed higher on chances that the U.S. Federal Reserve will speed up its bond purchase tapering. Furthermore, oil prices rose, reversing the previous day's losses, on expectations OPEC+ may pause supply additions amid growing concern the spread of the Omicron coronavirus variant could weigh on the global economy and fuel demand.
Back home, the yields on new 10 year Government Stock were trading flat with previous close of 6.35% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 5.71% from its previous close of 5.72% on Wednesday.