Bond yields traded lower on Thursday amid FY23 Union Budget's focus on investments, leading domestic credit rating agency Crisil has said that the capital expenditure is ‘not as high as it sounds’. However, it was quick to add that considering that governments usually tend to cut capex during a crisis, the government has maintained its focus on growth-spurring initiatives amid the pandemic.
In the global market, benchmark 10-year Treasury yields retreated from 27-month highs on Wednesday as the U.S. Treasury Department sold new 10-year notes to strong demand, and as investors waited on highly anticipated inflation data. Furthermore, oil prices were mixed, after rallying on an unexpected drop in U.S. crude inventories in the previous session, as investors await the outcome of U.S.-Iran nuclear talks that could add crude supplies quickly to global market.
Back home, the yields on new 10 year Government Stock were trading 7 basis points lower at 6.72% from its previous close of 6.79% on Wednesday.
The benchmark five-year interest rates were trading 16 basis points lower at 5.93% from its previous close of 6.09% on Wednesday.