Bond yields traded higher on Thursday even after Reserve Bank of India said that the second wave of COVID-19 pandemic has triggered revision of growth projections for the current financial year with consensus gravitating towards its earlier forecast of 10.5 per cent. Reserve Bank’s projection 10.5 per cent for the year 2021-22 -- 26.2 per cent in Q1, 8.3 per cent in Q2, 5.4 per cent in Q3 and 6.2 per cent in Q4.
In the global market, U.S. Treasury yields edged higher on Wednesday in choppy trading, with those on the long end rising from three-week lows, amid a recovery in risk appetite with gains in stocks as well as profit-taking from recent spikes in bond prices.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 5.99% from its previous close of 5.97% on Tuesday.
The benchmark five-year interest rates were trading 4 basis points higher at 5.53% from its previous close of 5.49% on Tuesday.
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