Bond yields traded higher on Thursday even after India Ratings revised downwards its GDP growth forecast for 2021-22 to 8.6 per cent from the consensus 9.2 per cent projected earlier.
In the global market, Treasury yields rose on Wednesday as Western countries unveiled more sanctions against Russia over its move into eastern Ukraine, but bond investors remained mainly concerned about inflation and a potential Federal Reserve policy mistake. Furthermore, oil prices gained more than $1, trading below seven-year highs hit earlier this week, as fresh developments on the Russia-Ukraine crisis sparked concerns that supported prices.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.76% from its previous close of 6.73% on Wednesday.
The benchmark five-year interest rates were trading 6 basis points higher at 6.05% from its previous close of 5.99% on Wednesday.