Bond yields edged lower on Thursday as Fitch Ratings said India has some room to cut capital expenditure in FY24 as there may be pressure on revenue as the buoyancy assumptions in the Union budget may be inflated.
In the global market, U.S Treasury yields fell Wednesday as investors digested the Federal Reserve’s latest interest rate decision and guidance on the central bank’s monetary policy path. Furthermore, Oil prices up on Wednesday after the Federal Reserve raised the key short-term interest rate by 25 basis points, emphasizing that the “U.S. banking system is sound and resilient”.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.34% from its previous close of 7.35% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.24% from its previous close of 7.23% on Tuesday.