Bond yields traded lower on Thursday after UN Department of Economic and Social Affairs in its World Economic Situation and Prospects (WESP) report has said that as the Ukraine conflict impacts the global GDP, India is projected to grow by 6.4 percent in 2022, well below the 8.8% growth in 2021, but still the fastest-growing major economy, with higher inflationary pressures and uneven recovery of the labor market curbing private consumption and investment. For the fiscal year 2023, India's growth is forecast to be 6 percent.
In the global market, U.S. Treasury yields fell in choppy trading on Wednesday, tracking losses on Wall Street, after poor U.S. housing data added to growing slowdown concerns amid aggressive monetary tightening by the Federal Reserve. Furthermore, oil prices rose, recovering from early losses, as lingering fears over tight global supplies outweighed fears over slower economic growth as highlighted by slumping global shares.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.33% from its previous close of 7.35% on Wednesday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.17% from its previous close of 7.15% on Wednesday.