Bond yields edged higher on Thursday after Reserve Bank of India (RBI), in its second bi-monthly policy for FY24, has decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent for second time in a row.
In the global market, treasury yields rose on Wednesday after the Bank of Canada raised interest rates, a move that could help the Federal Reserve retain a hawkish stance when policymakers meet next week and again say U.S. rates will stay higher for longer. Furthermore, Oil prices climbed on Wednesday as Saudi Arabia's plans for deep output cuts more than offset demand woes stemming from rising U.S. fuel stocks and weak Chinese export data.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.01% from its previous close of 6.98% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points higher at 6.95% from its previous close of 6.92% on Wednesday.