Bond yields edged lower on Thursday, as market participants remained on sidelines ahead of the Reserve Bank of India's monetary policy decision due on Friday. Some concern also came as the government data showed that India's foreign direct investment to gross domestic product ratio eased to 2.7% in fiscal year ending March 31, 2022 from 3.1% in the previous financial year.
In the global market, U.S. government debt prices rose on Wednesday, as investors cheered new economic data that shrugged off recession fears and continue to monitor geopolitical tensions between the United States and China. Furthermore, Oil prices rose in early Asian trade on Thursday, bouncing off multi-month lows in the previous session caused by data signalling weak U.S. fuel demand.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.22% from its previous close of 7.24% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.97% from its previous close of 6.98% on Wednesday.