Bond yields traded higher on Thursday amid the International Monetary Fund said India, which has received a record number of foreign direct investment during the last few years despite COVID-19 crisis, has quite a few safeguards in place to mitigate the risks from capital flows.
In the global market, U.S. Treasury yields fell, while a key part of the yield curve steepened on Wednesday, unwinding recent moves betting that aggressive Federal Reserve policy tightening could send the world's largest economy into recession as it tries to curb soaring inflation. Furthermore, Oil futures dived more than $5 a barrel morning on news that the Biden administration is weighing releasing some 1 million barrels of oil per day from strategic reserves for several months in a bid to calm soaring crude prices.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.81% from its previous close of 6.78% on Wednesday.
The benchmark five-year interest rates were trading 5 basis points higher at 6.09% from its previous close of 6.04% on Wednesday.