Bond yields trade lower on Thursday

Bond yields traded lower on Thursday as the government will repurchase up to 65 billion rupees ($955 million) of inflation-indexed bonds today. Meanwhile US Federal Reserve chair Janet Yellen in a testimony to Congress stated that global economic turmoil and massive sell-off in global equity markets could spook the US economy, rekindling hopes of a delay in interest rate raise.

In the global market, U.S. Treasury yields ended lower on Wednesday after the government sold $23 billion in 10-year notes to solid demand, showing that the dramatic drop in yields this year has not reduced investor appetite for the safe-haven bonds. Furthermore, Oil prices seesawed in choppy trade on Wednesday, with U.S. crude slipping and Brent paring gains as worries about a global supply glut offset data showing a surprise drop in U.S. crude stockpiles.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.71% its previous close at 7.72% on Wednesday.

The benchmark five-year interest rates were trading 1 basis point lower at 7.64% from its previous close at 7.65% on Wednesday.