Bond yields trade flat on Thursday

Bond yields traded flat on Thursday in absence of any major triggers, even as underlying sentiments remained bearish after separate reports showed India's economic growth lost some momentum in the June quarter and infrastructure output growth slowed in July. India's economic growth rate slipped to 6-quarter low of 7.1% in April-June, as compared to 7.9% in the previous quarter.

In the global market, U.S. Treasury long-dated yield notes were little moved on Wednesday but notched their largest monthly gain in more than a year as strong U.S. data and limited volatility reduced the appetite for safe-haven U.S. government debt. Furthermore, oil prices rose in early Asian trade, rebounding on a weaker U.S. dollar after falling around 3 percent or more in the previous session following a surprisingly large build in U.S. crude and distillate stocks last week. 

Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 7.11% on Wednesday.

The benchmark five-year interest rates were trading flat at its previous close at 7.01% on Wednesday.