Data showed U.S. consumer spending rose moderately in October, while the annual increase in inflation was the smallest in more than 2-1/2 years. On the jobs front, initial jobless claims rose from the prior week to indicate a softening of the labor market.
The yield on benchmark 10-year notes fell 3.9 basis points (bps) to 4.379%, after earlier sliding to 4.363%, a new two-month low. The two-year s yield, which reflects interest rate expectations, rose 0.2 bps to 4.885%.
"U.S. yields and oil prices have been the major triggers for government bond yield movements off late. In the absence of any major trigger domestically, these factors will continue to drive bond yields," said Badrish Kulhalli, head of fixed income at HDFC Life Insurance.
SBI is tapping the international markets second time this financial year. While $750 million is underwritten by global banks, an additional $250 million is made available through a green shoe option arranged by global banks including HSBC and JP Morgan.
Equities were mixed in Asia, with gains for tech stocks offset by slumping commodity shares. Wall Street futures pointed slightly lower following gains across the big three indexes overnight, led by a 0.9% rally for the tech-heavy Nasdaq.