Bond yields edged higher on Thursday as a private report stated that the slew of measures announced by Reserve Bank of India (RBI) to enhance foreign exchange inflows should help rupee to outperform its peers in emerging market economies.
In the global market, benchmark U.S. Treasury yields edged higher on Wednesday but had a relatively muted reaction after minutes from the Federal Reserve's June meeting showed that a deteriorating inflation situation prompted Fed officials to rally around an outsized interest rate increase. Furthermore, brent crude futures extended declines for a third session, slipping under $100 a barrel, as fears of a potential global recession spurred concerns about oil demand.
Back home, the yields on new 10 year Government Stock were trading 5 basis points higher at 7.34% from its previous close of 7.29% on Wednesday.
The benchmark five-year interest rates were trading 5 basis points higher at 7.14% from its previous close of 7.09% on Wednesday.