Bond yields traded higher on Thursday as Fitch Ratings has raised India's GDP growth forecast for the current fiscal (FY26) to 7.4 per cent, from 6.9 per cent in September, on increased consumer spending and improved sentiment boosted by GST reforms. 

In the global market, U.S. Treasury yields ticked lower on Wednesday on the latest signs of a weaker jobs market as shown in private payroll data, reinforcing a conviction that the Federal Reserve will lower interest rates another quarter percentage point at its final meeting of the year next week. Furthermore, oil prices climbed more than 1% on Wednesday after Russia said talks with U.S. officials in Moscow failed to reach a compromise on a potential Ukraine peace deal that could have eased sanctions on its oil sector.

Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.53% from its previous close of 6.52% on Wednesday. 

The benchmark five-year interest rates were trading 1 basis point higher at 6.23% from its previous close of 6.22% on Wednesday.