Bond yields after taking a breather in previous session, again resumed its southbound journey on Thursday tracing the sharp decline of crude oil prices. However, a sharper fall of Indian currency, limited the fall of yields.
On the global front, US Treasuries rose on Wednesday, with longer-dated yields dipping to the lowest in three weeks as worries over the outcome of the European debt crisis drove safe-haven buying of US government debt. Meanwhile, Oil tumbled more than 4 percent on Wednesday, the biggest drop in over two months as a commodities selloff led to breaches of key technical support.
Back on the home turf, the partially convertible currency is currently trading at 54.20, weaker by 48 paise from its previous close of 53.72 on Wednesday.
The yields on 10-year benchmark 8.79% - 2021 bonds edged lower at 8.47% from its previous close of 8.49%.
The benchmark five-year interest rate swaps inched lower at 7.04% from its previous close of 7.05% on Wednesday.
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