Bond yields edged lower on Wednesday as World Bank in its latest ‘India Development Update’ (IDU) has slashed the country’s Gross Domestic Product (GDP) growth forecast to 6.3% against the earlier estimate of 6.6 per cent in 2023-24 (FY24). It said growth is likely to be constrained by slower consumption growth and challenging external conditions, it said, adding that government consumption is projected to grow at a slower pace due to the withdrawal of pandemic-related fiscal support measures.
In the global market, Treasury yields fell on Tuesday, with the benchmark 10-year rate reaching an almost seven-month low, after U.S. data on job openings reignited fears that the world’s largest economy could tip into a recession. Furthermore, oil prices were little changed in choppy trading on Tuesday as investors weighed OPEC+ planned production cuts against weak U.S. and Chinese economic data that could suggest cooling oil demand. m Iraqi Kurdistan and hopes that banking sector turmoil is contained.
Back home, the yields on new 10-year Government Stock were trading 3 basis points lower at 7.28% from its previous close of 7.31% on Monday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.16% from its previous close of 7.17% on Monday.