Bond yields traded flat on Thursday, as Confederation of Indian Industry (CII) said the country's gross domestic product (GDP) is expected to grow at 9.5 per cent in the current financial year (FY 2021-22). This will take the GDP to a level that is slightly higher than in FY20. The strong growth in the second-half will be supported by robust external demand and large scale coverage of vaccination allowing resumption of economic activity.
In the global market, U.S. Treasury yields zoomed higher on Wednesday after Federal Reserve policymakers moved up their projections for commencing interest rates hikes to 2023 from 2024 as the economy recovers from the coronavirus pandemic. Furthermore, crude oil prices fell pressured by a stronger U.S. dollar, but losses were limited by a big drop in crude oil inventories in the United States, the world's top oil consumer.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.04% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points higher at 5.69% from its previous close of 5.67% on Tuesday.