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Bond yields trade higher on Friday

17 Mar 2023 Evaluate

Bond yields were trading higher on Friday amid rating agency Crisil said that the India’s economy is likely to log in 6 per cent growth next fiscal, in line with consensus estimates, driven by an increased capex by the private sector. It added the private sector capex is expected to deliver double-digit revenue growth for the second year on the trot. The economy is projected to grow 7 per cent this fiscal. Crisil further said it expects the corporate revenue to log in double-digit rise again next fiscal.

In the global market, Treasury yields rose Thursday, reversing an earlier decline, as traders weighed a rescue plan for beaten-down regional U.S. bank First Republic. Furthermore, oil prices settled higher on Thursday, ending a three-session losing streak, after reports that Saudi Arabia and Russia met to discuss ways to enhance market stability.

Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.36% from its previous close of 7.35% on Thursday.

The benchmark five-year interest rates were trading flat with its previous close of 7.25% on Thursday.

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