Bond yields traded flat on Thursday amid Fitch Solutions forecasted real GDP to grow 9.5 per cent in 2021-22 (April 2021 to March 2022). Risks to this forecast are to the downside, as the surge in new daily COVID-19 caseloads will most likely see an extension and expansion of lockdowns. It said that the resurgence of COVID-19 cases exposed cracks in the Indian healthcare system.
In the global market, U.S. Treasury yields drifted lower on Wednesday as inflation expectations leaped to multi-year highs even as Federal Reserve officials downplayed the risk of a big and sustained rise in inflation. Furthermore, oil prices fell as gasoline inventories in the United States, the world's largest oil consumer, rose for a fifth consecutive week although a draw in crude stockpiles helped to underpin prices.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 5.97% on Wednesday.
The benchmark five-year interest rates were trading 4 basis points lower at 5.52% from its previous close of 5.56% on Wednesday.