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Bond yields edges higher on Thursday

15 Dec 2022 Evaluate

Bond yields edged higher on Thursday after executing confidence that inflation would further decline, Finance Minister Nirmala Sitharaman has said that the government is on track to meet its budgetary target for deficit and added that there is no fear of stagflation in India. She further said that inflation has come down and it is now in the tolerable band of the RBI.

In the global market, the yield on the 2-year Treasury rose Wednesday after the Federal Reserve delivered a widely expected 50 basis point rate hike and indicated that it will continue raising rates to tame inflation. Oil settled up on Wednesday after OPEC and the International Energy Agency (IEA) forecast a rebound in demand over the course of next year and as U.S. interest rate hikes are expected to ease further alongside slowing inflation.

Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.25% from its previous close of 7.22% on Wednesday.

The benchmark five-year interest rates were trading 3 basis points higher at 7.13% from its previous close of 7.10% on Wednesday.

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