Bond yields edged marginally lower on Thursday amid a private report stating that the Reserve Bank of India may delay the expected policy interest rate cuts, but strong demand for bonds from long-term investors such as retirement funds and insurers will ensure that market interest rates are low, especially for the top-rated borrowers.
In the global market, U.S. Treasury yields retreated on Wednesday after monthly consumer inflation data came in softer than anticipated. Furthermore, oil prices rose on Wednesday on expectations for higher demand as the U.S. dollar weakened and a report showed U.S. crude and gasoline inventories fell while the release of inflation data may point to a more supportive economic outlook.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.07% from its previous close of 7.08% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.08% from its previous close of 7.09% on Wednesday.
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