Bond yields traded lower on Wednesday as Moody’s Investors Service pegged India’s GDP growth at 9.3 percent in the current fiscal ending March 2022 and 7.9 percent in FY23. The reimposition of lockdown measures along with behavioural changes on fear of contagion will curb economic activity, it said, adding that it does not expect the impact to be as severe as during the first wave.
In the global market yields, Treasury yields ended mostly flat, ultimately little moved by manufacturing data released earlier which showed strong demand in the sector, even as industry faces labor and raw material shortages. Furthermore, oil prices rose after OPEC and its allies stuck to their plan to cautiously return oil supply in June and July while expecting fuel demand to rebound strongly during the U.S. summer.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.00% from its previous close of 6.02% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points lower at 5.58% from its previous close of 5.60% on Tuesday.