The benchmark 10-year bond yield eased 2 bps on Thursday to 8.15 percent, tracking a slump in global crude prices.
Brent eased below $108 a barrel after data showed China's manufacturing activity continued to contract, weakening sentiment further in a market already reeling from Saudi Arabia's pledge to keep global oil prices low.
Bonds also recieved support after RBI deputy governor Subir Gokarn said the central bank has not ruled out open market operations to inject liquidity despite cutting the cash reserve ratio for lenders.
However, fears the government will roll back some of its big bang reforms after a key ally withdrew support from the ruling coalition limit gains in bond prices.
Q
