Bond yields traded higher on Thursday with private report stating that the Indian economic growth is likely to touch record high in the quarter through June, reflecting a very weak base last year and a rebound in consumer spending. The rebound came despite the drag from the deadly second wave of the coronavirus, which forced states across India to reimpose localised lockdowns and stop mobility completely from late April to early June.
In the global market, U.S. Treasury yields rose to almost two-week highs on Wednesday ahead of a speech later in the week by Federal Reserve Chair Jerome Powell that will be scoured for any new clues on when the U.S. central bank is likely to begin paring bond purchases. Furthermore, oil fell for the first session in four amid renewed concerns about demand recovery as more restrictions are imposed to curb COVID-19 infections.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.25% from its previous close of 6.24% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.69% from its previous close of 5.68% on Wednesday.