Bond yields traded flat on Thursday as S&P Global Ratings said India is expected to post strong economic growth in the coming quarters, even as inflation, led by food prices, is likely to remain elevated. It said the economy is expected to clock 9.5 per cent growth in the current fiscal year, followed by 7 per cent expansion in the next year.
In the global market, longer-dated U.S. government bond yields fell on Wednesday and touched a session low after a strong auction by the Treasury of 10-year notes and the Fed's Beige Book of economic activity. Furthermore, oil prices rose for a second session, recovering from earlier losses as a decline in U.S. Gulf of Mexico output following damages from Hurricane Ida underpinned the market.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.18% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 5.60% from its previous close of 5.61% on Wednesday.