Bond yields traded flat on Wednesday after FICCI's Economic Outlook Survey has stated that India's gross domestic product (GDP) is expected to contract by 8 per cent in current financial year (FY21). The annual median growth forecast by the industry body is based on responses from leading economists representing industry, banking and financial services sector. The survey was conducted in January.
In the global market yields, U.S. Treasury yields were mostly down in choppy trading on Tuesday, after earlier hitting three-week lows on the long end of the curve, as investors remained cautious about the size of a proposed U.S. stimulus package. Furthermore, oil prices climbed after industry data showed U.S. crude stockpiles fell unexpectedly last week and China, the world's second-biggest oil user, reported its lowest daily rise in COVID-19 cases, bolstering hopes of a pick-up in demand.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 5.95% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 5.33% on Monday.