Bond yields edged lower on Tuesday with the ripple effect of slowdown in global growth and mixed crop output, rating agency Crisil has revised down India growth projections for the current fiscal. The agency has downgraded the India growth forecast by 30 bps to 7 per cent for fiscal 2023 from 7.3 per cent primarily because of the slowdown in global growth that has started to impact our exports and industrial activity. It added that this will test the resilience of domestic demand.
In the global market, U.S. Treasury yields were little changed Monday to kick off a holiday-shortened week, as investors awaited further clues about the Federal Reserve’s monetary policy plans and fretted over the outlook for inflation. Furthermore, oil prices closed fractionally lower on Monday in a volatile trading session, plunging and then rebounding after Saudi Arabia “categorically” denied a report that Opec was weighing an increase in output that would help to counteract a loss of Russian crude supplies.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.30% from its previous close of 7.32% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 7.18% on Monday.