Bond yields edged higher on Thursday as private report expects GDP growth in the current fiscal to be in the range of 6.5-6.8 per cent primarily due to upcoming festive spending as well as higher government expenditure before the national elections mid-next year.
In the global market, U.S. Treasury yields edged higher on Wednesday, with the 10-year hitting a 16-year high, as concerns about government debt issuance mounted amid the ongoing headwind of Federal Reserve officials saying interest rates will stay higher for longer. Furthermore, Oil prices climbed two-week high on Wednesday on a bigger-than-expected U.S. storage draw and concerns about global supplies after Iran called for an oil embargo on Israel over the conflict in Gaza.
Back home, the yields on new 10 year Government Stock were trading 2 basis point higher at 7.37% from its previous close of 7.35% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points higher at 7.38% from its previous close of 7.35% on Wednesday.