Bond yields were trading lower on Wednesday as the International Monetary Fund (IMF) slashed India’s growth forecast for 2022-23 (FY23) by 80 basis points to 7.4 per cent, citing less favourable external conditions and rapid policy tightening by the central bank.
On the global front, U.S. Treasury yields trended lower on Tuesday, driven by a flight to safety following the latest supply cuts in gas supply from Russia to Europe and growing concerns about a U.S. economic slowdown as seen in Walmart's profit warning. Furthermore, oil prices rose as industry data showed a larger-than-expected drawdown in U.S. crude stockpiles.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.34% from its previous close of 7.36% on Tuesday.
The benchmark five-year interest rates were trading 3 basis point higher at 7.17% from its previous close of 7.14% on Tuesday.