Bond yields traded lower on Thursday after credit rating agency, Moody's Investors Service in its ‘Global Macro Outlook 2022-23 (March 2022 Update)’ has lowered India's growth estimate by 0.4 percentage point for the current year to 9.1 per cent, from 9.5 per cent earlier, as the agency is expecting high fuel and potentially fertilizer costs would weigh on government finances down the road, potentially limiting planned capital spending.
In the global market, the U.S. Treasury yield curve flattened sharply on Wednesday as yields on short- and intermediate-dated maturities that are highly sensitive to interest rates jumped, after the Federal Reserve raised interest rates by a quarter of a percentage points and indicated that it would act aggressively to stamp out inflation. Furthermore, oil futures rose in early trading, recovering some of the prior day's losses, after the International Energy Agency (IEA) said a decline in oil demand due to higher prices would not offset a shut-in of Russian oil supplies.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.77% from its previous close of 6.78% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points lower at 6.05% from its previous close of 6.08% on Wednesday.