Bond yields traded higher on Thursday despite International Monetary Fund (IMF) cut India's economic growth forecast to 9 per cent for the current fiscal year ending March 31, joining a host of agencies which have downgraded their projections on concerns over the impact of a spread of new variant of coronavirus on business activity and mobility.
In the global market, short-term U.S. yields rose to 23-month highs and the dollar strengthened after the Federal Reserve's chairman signaled plans to steadily tighten policy. Furthermore, oil prices fell as investors cashed in profits from the 2% gains in the previous session after the U.S. Federal Reserve indicated an interest rate hike in March, leading to a technical correction in surging energy markets.
Back home, the yields on new 10 year Government Stock were trading 8 basis points lower at 6.74% from its previous close of 6.66% on Tuesday.
The benchmark five-year interest rates were trading 7 basis points lower at 6.11% from its previous close of 6.04% on Tuesday.