Bond yields trade lower on Thursday

Bond yields traded lower on Thursday, after the Rajya Sabha passed the Goods and Services Tax (GST) Constitutional Amendment Bill, which aims to do away with multiple rates of taxation at each state’s level and to replace those with a uniform rate nationwide. However, traders remained cautious ahead of the monetary policy meet next week.

In the global market, U.S. Treasury yields held steady on Wednesday, a day after jumping in response to Japan's new fiscal stimulus, as investors awaited a key U.S. jobs report on Friday. Furthermore, Oil prices jumped, with U.S. crude futures returning to above $40 a barrel, after a larger-than-expected gasoline draw offset a surprise build in crude stockpiles in the No. 1 oil consumer.

Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.17% from its previous close at 7.19% on Wednesday.

The benchmark five-year interest rates were trading 2 basis points lower at 7.07% from its previous close at 7.09% on Wednesday.