Bond yields traded flat on Thursday with finance ministry’s statement that the muted impact of the third wave of the pandemic on economic activity, the Indian economy may undergo an economic reset by end of the year, clocking 9 per cent growth in 2021-22 (FY22) and around 8 per cent in 2022-23 (FY23).
In the global market, the U.S. Treasury yield curve steepened after a rally in the 2-year note following a reassessment of the Federal Reserve's path toward monetary policy normalization, while traders kept a look on developments in the Ukraine-Russia border. Furthermore, oil slid in Asian trade after both France and Iran said parties are closer to an agreement to salvage Iran's 2015 nuclear deal with world powers, offsetting ongoing concerns over the situation in Ukraine.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.68% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.93% from its previous close of 5.92% on Wednesday.