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Bond yields edge higher on Wednesday

28 Dec 2022 Evaluate

Bond yields edged higher on Wednesday even after India Ratings and Research (Ind-Ra) in its ‘Research and Ratings Compendium’ said that the ratio of Upgrades/Downgrades is likely to moderate, amid higher inflation, slowing exports and an improving but still weak domestic demand. The agency expects the economic growth to slow down to 4.0% - 4.5% in 2HFY23 from 9.7% in 1HFY23.

In the global market, U.S. Treasury yields climbed Tuesday as markets reopened after Monday’s Christmas holiday and investors looked ahead to 2023. Furthermore, oil prices were steady after hitting a three-week high on Tuesday as restarts at some U.S. energy plants shut by winter storms offset gains stemming from hopes of a demand recovery as China eases its COVID-19 restrictions.

Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.23% from its previous close of 7.21% on Tuesday.

The benchmark five-year interest rates were trading 1 basis point higher at 7.31% from its previous close of 7.30% on Tuesday.

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