Bond yields traded higher on Thursday after India's private sector economy continued to expand at a robust rate amid a continued sharp upturn in new orders. The flash survey data from S&P Global showed that the flash HSBC composite output index dropped slightly to 60.5 in August from 60.7 in July. However, a score above 50 indicates expansion in the sector.
In the global market, U.S. Treasury yields shrank on Wednesday as jobs data revisions and minutes of the Federal Reserve's July meeting reinforced expectations that the central bank will finally cut interest rates in September for the first time in over four years. Furthermore, oil prices steadied on Wednesday, with benchmark Brent holding above $77 a barrel, after steady sell-offs driven by expectations of reduced Chinese demand and diminishing concerns the conflict in the Middle East could spread and disrupt supply.
Back home, the yields on new 10 year Government Stock were trading 11 basis points higher at 6.96% from its previous close of 6.85% on Wednesday.
The benchmark five-year interest rates were trading 11 basis points higher at 6.88% from its previous close of 6.78% on Wednesday.