Bond yields traded higher on Thursday as Reserve Bank of India (RBI) bulletin has stated that the Indian economy is recovering from the slowdown in momentum witnessed in the September quarter (Q2FY25), driven by strong festival activity and a sustained upswing in rural demand.
In the global market, Treasury yields fluctuated on Tuesday in a holiday-shortened trading session ahead of the Christmas break. Furthermore, oil prices rose on Tuesday, reversing the prior session's losses, buoyed by a slightly positive market outlook for the short term, despite thin trade ahead of the Christmas holiday.
Back home, the yields on new 10 year Government Stock were trading 12 basis points higher at 6.89% from its previous close of 6.77% on Tuesday.
The benchmark five-year interest rates were trading 11 basis points higher at 6.84% from its previous close of 6.73% on Tuesday.