Bond yields edged higher on Wednesday, despite ICRA Ratings cuts India’s Gross Domestic Product (GDP) forecast amid the Covid-19 crisis and expects the economy to grow at just 2% in the current financial year (FY21).
In the global market, Yields on longer-term U.S. Treasuries erased some early gains on Tuesday after a Wall Street rally sparked by hopes the coronavirus outbreak may be slowing fizzled out. Furthermore, oil bounced back, with U.S. crude jumping over $1, lifted by hopes that a meeting between OPEC members and allied producers on Thursday will trigger output cuts to shore up prices that have crumbled amid the coronavirus pandemic.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.44% from its previous close of 6.41% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points higher at 5.92% from its previous close of 5.90% on Tuesday.