Bond yields edged higher on Wednesday amid a private report stating that the Centre is likely to cut its 2023-24 (FY24) fiscal deficit in the range of 5.8-5.9 per cent of the GDP from 6.4 per cent in FY23. However, the deficit is expected to remain much larger than the 4-4.5 per cent of the GDP that was usual for decades.
In the global market, U.S. Treasury yields fell on Tuesday as earnings season kicked into full gear and provided hints into the state of the U.S. economy. Furthermore, Oil prices were steady on Tuesday as concerns about a global economic slowdown and expected build in U.S. oil inventories were offset by hopes of a fuel demand recovery from top importer China.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.35% from its previous close of 7.34% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.16% from its previous close of 7.15% on Tuesday.