Bond yields edged lower on Wednesday with Chief Economic Advisor V Anantha Nageswaran’s statement that India’s gross domestic product (GDP) growth for the current fiscal year (FY23) is now expected to be between 6.5 and 7 per cent. This was for the first time a government official said real economic growth may not exceed 7 per cent this fiscal year.
In the global market, U.S. Treasury yields fell Tuesday as market attention turned to the congressional midterm elections and traders anticipated inflation data due to be released later in the week. Furthermore, Oil prices fell on Tuesday in choppy trading on growing worries about fuel demand as COVID-19 outbreaks worsened in top crude importer China, and jitters about the outcome of U.S. midterm elections.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 7.39% from its previous close of 7.43% on Monday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.36% from its previous close of 7.38% on Monday.