Bond yields trade lower on Thursday

Bond yields traded lower on Thursday as investors got support with the report that India's current account deficit may narrow to 0.5 percent of GDP in 2016 from 0.7 percent in 2015 owing to lower commodity prices, particularly oil.

In the global market, U.S. Treasuries prices rose on Wednesday, with 30-year yields hitting their lowest levels in five months, as a deepening rout in global stock and oil markets stoked a fresh wave of purchases of low-risk government debt. Furthermore, Oil prices stabilised in early trading on Thursday after hitting fresh 2003 lows the session before, but analysts said a persistent global glut would keep pressuring markets.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.74% from its previous close at 7.75% on Wednesday.

The benchmark five-year interest rates were trading 1 basis point lower at 7.63% from its previous close at 7.64% on Wednesday.