Bond yields traded higher on Thursday even after ICRA’s report said that the ongoing second wave of COVID-19 will dampen the pace of recovery for corporate India and the contact-intensive sectors will be hit the most.
In the global market, U.S. Treasury yields fell on Wednesday after Federal Reserve Chairman Jerome Powell said now is not the time to discuss tapering bond purchases as the economy is still far from meeting the US central bank's employment and inflation goals. Furthermore, oil prices extended gains after rising 1% the previous session, as bullish forecasts on recovering demand this summer offset concerns of rising COVID-19 cases in India, Japan and Brazil.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.06% from its previous close of 6.05% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.43% from its previous close of 5.42% on Wednesday.
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