Bond yields traded higher on Thursday as Icra Ratings in its report has said that manufacturing sector capital expenditure is on course for a leg-up with overwhelming responses to the government's production-linked incentives schemes, especially for lithium-ion battery, pharma and solar module segments.
In the global market, U.S. Treasury yields rose to two-week highs on Wednesday in choppy trading, as concerns about recession hitting the world's largest economy have eased amid a solid round of economic data, even as the Federal Reserve remained on track to undertake aggressive tightening this year. Furthermore, oil prices fell by around $3 a barrel as investors cashed in on a recent rally with a key producers meeting later in the day set to pave the way for expected output increases.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.43% from its previous close of 7.41% on Wednesday.
The benchmark five-year interest rates were trading 4 basis points higher at 7.23% from its previous close of 7.19% on Wednesday.