Bond yields were trading lower on Wednesday after International Monetary Fund (IMF) in its latest World Economic Outlook (WEO) report has slashed its gross domestic product (GDP) growth forecast of India to 8.2 per cent for fiscal year 2022-23 (FY23) from 9 per cent forecasted earlier. It said that higher commodity prices will weigh on private consumption and investment. This was one of the steepest cuts for emerging economies compared to the IMF’s January WEO forecasts.
On the global front, Oil prices rose, gaining back some of their losses during the previous session on concerns about energy demand after the International Monetary Fund (IMF) cut its economic growth forecasts.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.14% from its previous close of 7.15% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.59% from its previous close of 6.58% on Tuesday.