Bond yields edged higher on Thursday after private survey showing that Indian business activity expanded at its fastest pace in seven months in February as demand remained strong for both manufacturing and services. HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 61.5 this month from January's final reading of 61.2, staying above the 50-mark that separates expansion from contraction for a 31st straight month.
In the global market, U.S. Treasury yields advanced on Wednesday after meeting minutes from the Federal Reserve showed caution around lowering interest rates too quickly. Furthermore, crude oil futures rose Wednesday as Federal Reserve officials indicated that interest rates have likely reached their peak.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.06% from its previous close of 7.04% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points higher at 7.06% from its previous close of 7.03% on Wednesday.