Bond yields traded lower on Thursday even after private report stated that India’s economy is expected to have grown at 9.2 per cent in the fiscal ended March 2022, after having contracted by 7.3 per cent in the previous financial year, aided by resilience in the rural economy, uptick in bank credit and rising GST collections.
In the global market, benchmark U.S. Treasury yields were little changed on Wednesday after minutes from the Federal Reserve showed policymakers agreed to hike interest rates by a half-percentage point to combat inflation and said a 'very strong' economy may require reducing monetary supply. Furthermore, oil prices rose, extending a cautious rally this week on signs of tight supply while the European Union (EU) wrangles with Hungary over plans to ban imports from Russia, the world's second-largest crude exporter, after it invaded Ukraine.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.28% from its previous close of 7.30% on Wednesday.
The benchmark five-year interest rates were trading flat with its previous close of 7.10% on Wednesday.