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Bond yields trade higher on Thursday

29 Jul 2021 Evaluate

Bond yields traded higher on Thursday after Chief Economic Adviser (CEA) K V Subramanian stated that India is expected to hit a growth rate of 6.5-7 percent in 2022-23 and accelerate further to 8 percent in the subsequent years on the back of reforms undertaken by the government.

In the global market, U.S. Treasury yields fell on Wednesday after the Federal Reserve flagged ongoing discussions around the eventual withdrawal of monetary policy support but gave no details on when it is likely to reduce bond purchases. Furthermore, oil prices slipped but remained near $75 per barrel as crude stockpiles in the United States, the world's top oil consumer, fell last week to their lowest since January 2020 and imports and production dropped.

Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.20% from its previous close of 6.18% on Wednesday.

The benchmark five-year interest rates were trading 2 basis points higher at 5.72% from its previous close of 5.70% on Wednesday.

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