Bond yields traded higher on Thursday after the minutes of the August review of the Monetary Policy Committee (MPC) showed that members of the Reserve Bank of India’s (RBI’s) rate-setting panel indicated interest rate hikes sooner than later as headline inflation is likely to rise from its benign levels in the coming months.
In the global market, longer-term U.S. Treasury yields pulled back on Wednesday, reversing course from this week’s major advance, after the Treasury Department announced an upscaled buyback operation of the nation’s debt. Furthermore, Oil prices rose on Thursday after U.S. President Donald Trump threatened more, stricter economic restrictions against Iran.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 6.85% from its previous close of 6.81% on Wednesday.
The benchmark five-year interest rates were trading 6 basis points higher at 6.50% from its previous close of 6.44% on Wednesday.