Bond yields edged lower on Thursday as Reserve Bank Governor Shaktikanta Das said the frequent food price spikes pose a risk to anchoring of inflation expectations and called for timely supply side measures to limit such shocks.
In the global market, US Treasury 10-year yields pulled back from this week's 16-year highs on Wednesday, as weak euro zone business activity data gave battered government bond markets globally a reprieve. Furthermore, oil prices dipped on Wednesday as demand woes stemming from a build in U.S. gasoline stocks and weak manufacturing data globally outweighed optimism around a larger-than-expected drop in U.S. crude stocks.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.18% from its previous close of 7.19% on Wednesday.
The benchmark five-year interest rates were trading flat with its previous close of 7.17% on Wednesday.