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Bond yields edges lower on Thursday

10 Nov 2022 Evaluate

Bond yields edged lower on Thursday as a private report said that India's GDP growth will slow down to 5.5 per cent in FY24 from the 6.9 per cent expected in the current fiscal 2022-23. The slowdown was attributed to slowing global growth and tightening of monetary policies. It said India will be among the lesser affected economies in the world, but made it clear that the world's fifth largest economy is not immune from global headwinds.

In the global market, Treasury yields fell on Wednesday as it remained unclear which party would be in control of Congress, and a crypto selloff weighed on markets. Furthermore, oil prices slipped on Wednesday after industry data showed that U.S. crude stockpiles rose more than expected and on concerns that a rebound in COVID-19 cases in top importer China would hurt fuel demand.

Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 7.34% from its previous close of 7.38% on Wednesday.

The benchmark five-year interest rates were trading 6 basis points lower at 7.28% from its previous close of 7.34% on Wednesday.

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