New Delhi, Aug. 21 -- Indian government bond yields edged higher on Thursday, with the benchmark 10-year yield climbing above 6.5%, as traders turned cautious amid fiscal concerns following the government's proposed overhaul of the Goods and Services Tax (GST) structure.

The 10-year benchmark yield was at 6.5012%, compared with the previous close of 6.4969%, reflecting subdued demand for sovereign debt after Prime Minister Narendra Modi, in his Independence Day speech, outlined a simplified GST framework.

The Group of Ministers (GoM) on GST rationalisation has accepted the Centre's plan to shift to a two-slab structure of 5% and 18%, scrapping the existing 12% slab, while retaining special rates for select categories. The GST reforms, a...