Bond yields traded higher on Thursday with Commerce Secretary Rajesh Agrawal’s statement that India and the UK Free Trade agreement (FTA), signed in July last year, is likely to come into force from May. India and the UK signed the Comprehensive Economic and Trade Agreement (CETA), under which 99 per cent of Indian exports will enter the British market at zero duty, while tariffs on British products, such as cars and whisky, will be reduced in India.

In the global market, U.S. 10-year Treasury yield rose on Wednesday as investors kept an eye on indications from the White House that negotiations to address the Middle East conflict are set to restart later this week. 

Back home, the yields on new 10 year Government Stock were trading 02 basis points higher at 6.88% from its previous close of 6.86% on Wednesday.

The benchmark five-year interest rates were trading 05 basis points higher at 6.57% from its previous close of 6.52% on Wednesday.