Bond yields traded flat on Wednesday, as investors remained cautious with the International Monetary Fund’s (IMF) report that it trimmed its economic growth forecasts for India by 20 basis points (bps) each from its January predictions to 7.3% for FY20 and 7.5% for the next fiscal.
In the global market, US Treasury yields slid on Tuesday amid renewed concerns about a trade dispute between the United States and the European Union, as well as worries about the global economic outlook after the International Monetary Fund reduced growth forecasts for 2019. Furthermore, oil prices crept higher, supported by supply cuts by producer club OPEC and US sanctions against oil exporters Iran and Venezuela, but restricted by expectations that an economic slowdown could soon dent fuel consumption.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close of 7.37% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.14% from its previous close of 7.13% on Tuesday.