Bond yields edged flat on Thursday as traders were anxious with private report stated that India's economy will slow considerably this fiscal year as the global economic slowdown impedes domestic growth prospects, which showed inflation will remain elevated despite recent interest rate hikes.
In the global market, U.S. Treasury yields fell on Wednesday as investors awaited comments from Federal Reserve officials that could provide hints about the central bank's monetary policy plans. Furthermore, Oil prices fell on Thursday as muted U.S. economic data and expectations of interest rate hikes pushed up the U.S. dollar, prompting fear of a stronger dollar hurting global oil demand by making it more expensive.
Back home, the yields on new 10-year Government Stock were trading flat with its previous close of 7.22% on Wednesday.
The benchmark five-year interest rates were trading flat with its previous close of 7.05% on Wednesday.