Bond yields traded flat on Thursday, as traders remain concerned with private report that the likelihood of Indian GDP growth coming at below 7% in 2019-20 is ‘very high’ despite aiding factors like low oil prices and an expansionary budget.
In the global market, US Treasury yields retreated on Wednesday as stocks weakened and remarks from New York Federal Reserve President John Williams about the persistence of low inflation further curtailed expectations of interest rate hikes in the near future. Furthermore, oil edged up amid ongoing OPEC-led supply cuts and US sanctions against exporters Venezuela and Iran, although prices were prevented from rising further by record US crude output and rising commercial fuel inventories.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close of 7.57% on Wednesday.
The benchmark five-year interest rates were trading flat at its previous close of 7.56% on Wednesday.