Bond yields traded higher on Thursday even after Credit card spends fell to an eight-month low in May amid localised lockdowns imposed by states to battle the second wave of coronavirus. The latest cards data released by the Reserve Bank of India (RBI) shows the total credit card spends fell to Rs 548 billion in May, recording a more than a 7 percent decline from Rs 592 billion in the previous month.
In the global market, U.S. Treasury yields fell after Federal Reserve Chair Jerome Powell on Wednesday maintained his view that strong inflation will be temporary, even after data showed for the second day that price pressures rose more than expected in June. Furthermore, oil prices fell more than 1%, extending losses as investors braced for more supplies following a compromise between top OPEC producers and as U.S. fuel stocks rose, raising concerns about demand in the world's largest consumer.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.11% from its previous close of 6.10% on Wednesday.
The benchmark five-year interest rates were trading flat with its previous close of 5.69% on Wednesday.