Bond yields traded higher on Thursday with RBI data showing that the country's foreign exchange reserves in nominal terms, including valuation effects, rose by $30.3 billion in 2021-22 fiscal against $99.2 billion expansion in FY2020-21.
In the global market, U.S. Treasury yields fell to almost two-week lows on Wednesday as fears grew that the Federal Reserve will cause a recession by aggressively tightening monetary policy as it tackles soaring inflation. Furthermore, oil prices fell 2%, extending losses from the previous day, as investors worried that aggressive U.S. interest rate hikes could trigger a recession and dent fuel demand.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.41% from its previous close of 7.39% on Wednesday.
The benchmark five-year interest rates were trading flat with its previous close of 7.22% on Wednesday.