Bond yields traded flat on Thursday, as Former Reserve Bank of India (RBI) Governor Duvvuri Subbarao said that India’s economy may decline by 5 percent in the current financial year (FY21) but may expand by around 5 percent in the next financial year (FY22).
In the global market, U.S. Treasury yields fell on Wednesday but held in their recent tight range, while the Treasury sold a record amount of five-year notes to relatively light demand. Furthermore, oil prices fell in early trade after U.S. crude, gasoline and heating oil inventories all rose more than expected, dousing hopes of a smooth recovery in demand from coronavirus lockdowns.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 5.98% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.42% from its previous close of 5.41% on Wednesday.