The government bond yields edged up on Thursday for a second straight session on caution ahead of economic growth data that could set expectations for future interest rate cuts.
India is expected to post GDP growth of 5.3% in the April-June quarter, according to a median estimate in a Reuters poll of 38 economists, its slowest pace in three years.
However, traders are bracing for the prospect growth could fall below 5% percent, an outcome that could lead to increased pressure on the RBI to amend its hawkish stance. The benchmark 10-year bond yield closed up 1 basis point at 8.19%. Total volumes on the central bank's electronic trading platform were at a moderate R16,870 crore.