Bond yields traded higher on Thursday, amid income tax department has issued over Rs 24,792 crore refunds to more than 15 lakh taxpayers so far this fiscal (FY22). Of this personal income tax refunds worth Rs 7,458 crore has been issued in over 14.98 lakh cases. Corporate tax refunds of Rs 17,334 crore have been issued to 43,661 taxpayers.
In the global market, U.S. Treasury yields jumped on Wednesday on news Federal Reserve policymakers in April hinted at a possible shift in future policy, conjuring up memories of a 2013 market sell-off known as the 'taper tantrum. Furthermore, oil prices fell after a slump in the previous session, as rising U.S. stockpiles added to concerns about a hit to demand from surging coronavirus infections in Asia and possible U.S. rate hikes.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 5.98% from its previous close of 5.97% on Wednesday.
The benchmark five-year interest rates were trading 2 basis points higher at 5.58% from its previous close of 5.56% on Wednesday.