Bond yields edged higher on Wednesday after the Reserve Bank projected India's economic growth at 6.4 per cent for 2023-24, broadly in line with the estimate of the Economic Survey tabled in Parliament last week. Besides, the Reserve Bank projected retail inflation to ease to 5.3 per cent in next fiscal from 6.5 per cent this year on assumptions of lower imported inflation, even though core inflation remains sticky.
In the global market, treasury yields ticked higher Tuesday even after commentary from Federal Reserve Chairman Jerome Powell suggested that the central bank is making headway in its efforts to tamp down inflation. Furthermore, Oil prices climbed on Tuesday after the head of the U.S. central bank eased market concerns over interest rate hikes, while recovering demand in China also boosted prices.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 7.34% from its previous close of 7.30% on Tuesday.
The benchmark five-year interest rates were trading flat with its previous close of 7.20% on Tuesday.
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