Bond yields traded higher on Thursday after Chief Economic Advisor (CEA) V Anantha Nageswaran said that the depreciation of the rupee against the US dollar has been lower than other major global currencies such as the Euro, the British pound and the Japanese yen. He attributed depreciation in rupee and other currencies against the US dollar to the aggressive monetary tightening by the US Federal Reserve.
In the global market, U.S. Treasury yields were mixed on Wednesday, moving within narrow ranges, as bond investors balanced their positions ahead of another Federal Reserve meeting next week that could signal more hefty rate increases to scupper persistently strong inflation. Furthermore, Oil prices fell for a second straight session, as demand concerns outweighed tight global supply after U.S. government data showed tepid gasoline demand during the peak summer driving season.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.45% from its previous close of 7.44% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.20% from its previous close of 7.19% on Wednesday.