Bond yields dipped to a 33-month low level on hopes of easier global monetary policy environment boosting foreign inflows into emerging markets and thereby prompting the Reserve Bank of India to cut rates further.
On the global front, US Treasuries were little changed in Asian trade on Thursday, but the benchmark yield stood near its April peak as the market remained pressured by fresh bond offerings this week and a blow from surprisingly strong US jobs data last week. Meanwhile, Brent futures held above $104 a barrel on Thursday, as upbeat data worldwide renewed hopes of a revival in demand growth, dampening concerns that ample supplies could weigh on prices.
Back home, the yields on 10-year 8.79% - 2021 bonds were trading 3 basis points lower at 7.66% from its previous close of 7.69% on Wednesday.
The benchmark five-year interest rate swaps were trading 2 basis points lower at 6.94% from its previous close of 6.96% on Wednesday.
