Bond yields traded flat on Thursday, as Fitch Ratings has cut India's Gross domestic product (GDP) growth forecast to 8.4 percent from the previous 8.7 percent for the current fiscal year ending March 31, 2022, saying the rebound after the second wave of COVID infections has been subdued than expected. However, it raised the economic growth projection for the next financial year (FY23) to 10.3 percent from previously forecast 10 percent.
In the global market, the benchmark U.S. 10-year Treasury yield rose modestly on Wednesday, as investors weighed encouraging vaccine news on the new Omicron variant against the rapid spread of cases. Furthermore, oil prices extended gains on confidence that the Omicron coronavirus variant would not dent global growth, even as some governments stepped up curbs to stop its rapid spread.
Back home, the yields on new 10 year Government Stock were trading flat with previous close of 6.34% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.70% from its previous close of 5.69% on Wednesday.
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