Bond yields traded higher on Wednesday, as the World Bank in its latest Global Economic Prospects report has retained India’s gross domestic product (GDP) growth forecast at 8.3 percent for current fiscal year 2021-22 (FY22) as what was stated in its last projection released in October 2021. Besides, it upgraded the country’s growth forecast for FY23 to 8.7 percent from 7.5 percent estimated earlier. It cited improving growth prospects, especially a reviving private capex cycle for up-gradation.
In the global market, U.S. Treasury yields dipped slightly on Tuesday as Fed Chair Jerome Powell detailed his plan to fight inflation if confirmed for a second term leading the central bank. Furthermore, Oil hit its highest since the Omicron outbreak on Wednesday after U.S. Federal Reserve Chair Jerome Powell sounded less bullish on rates than expected in testimony to Congress
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.59% from its previous close of 6.57% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points higher at 6.02% from its previous close of 6.00% on Tuesday.