Bond yields traded lower on Thursday with private report stating that the India's retail inflation is likely to accelerate to seven-month high in June on rising food and fuel prices, staying above the Reserve Bank of India's comfort zone for a second straight month.
In the global market, U.S. Treasury yields continued on their downward trajectory on Wednesday, with 10-year yields on track for a seventh straight session of declines on worries the economic recovery may be softening while investors assessed the minutes from the Federal Reserve's June meeting for clues to its policy path. Furthermore, oil prices fell for a third day amid anxiety that supply may rise after the collapse this week of talks among major producers, potentially causing the current output agreement to be abandoned.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.13% from its previous close of 6.16% on Wednesday.
The benchmark five-year interest rates were trading 7 basis points lower at 5.72% from its previous close of 5.79% on Wednesday.