Bond yields edged lower on Thursday despite India’s industrial production growth measured in terms of the Index of Industrial Production (IIP) rose to 5.2 per cent in May, mainly due to good performance by the manufacturing and mining sectors.
In the global market, treasury yields dropped on Wednesday after the inflation report in June showed an easing in prices. Furthermore, oil prices settled higher on Wednesday, with benchmark Brent futures breaching $80 a barrel for the first time since May, after U.S. inflation data spurred hopes the Federal Reserve may have fewer interest rate hikes in store for the world's biggest economy.
Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 7.06% from its previous close of 7.11% on Wednesday.
The benchmark five-year interest rates were trading 6 basis points lower at 7.04% from its previous close of 7.10% on Wednesday.