Bond yields traded higher on Thursday as an article on the state of the economy published in RBI Bulletin said that upbeat high-frequency indicators and consumer confidence show that the Indian economy continues to forge ahead, emerging out of shackles of the pandemic. It said the recovery is spearheaded by an uptick in private investment through November-December alongside a turnaround in bank credit offtake and high capex from the government sector (Centre and States).
In the global market, U.S. Treasury yields rose on Wednesday but were sharply off the day's highs after the Federal Reserve announced that it was doubling the pace of its pandemic-era bond purchases, triggering some trader bets that the Fed could take a more muted approach to raising interest rates. Furthermore, oil prices rose as U.S. implied consumer petroleum demand surged to a record high in the world's top oil consumer even as the Omicron variant of coronavirus threatens to dent oil consumption globally.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.37% from its previous close of 6.36% on Wednesday.
The benchmark five-year interest rates were trading flat with its previous close of 5.73% on Wednesday.