Bond yields trade higher on Thursday

Bond yields traded higher on Thursday as rising oil prices dented buoyancy spurred by the smallest inflation reading in six months. Meanwhile, RBI Governor Raghuram Rajan talking on euphoria about India being the world's fastest-growing economy has said that India still remains one of the poorest nations in the world on a per capita basis.

In the global markets, U.S. Treasury yields rose on Wednesday to three-week highs, as oil and stock prices gained, reducing demand for safe-haven bonds, and as new sales of corporate debt also weighed on the market. Furthermore, Oil prices was high on Thursday after the International Energy Agency said it expects the oil market to rebalance from oversupply by next year, provided there is no major economic downturn.

Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.46% from its previous close at 7.43% on Wednesday.

The benchmark five-year interest rates were trading 3 basis points higher at 7.49% from its previous close at 7.46% on Wednesday.