Bond yields edged higher on Thursday even after domestic rating agency Crisil said the growth in aggregate GST collection for states is likely to moderate to 12-14 per cent in FY24 from 20 per cent in FY23.
In the global market, U.S. Treasury yields moved higher on Wednesday after the Federal Reserve kept interest rates unchanged, as was widely expected, but forecast another 50 basis points in hikes by the end of the year. Furthermore, oil prices fell on Wednesday after the U.S. Federal Reserve projected more interest rate hikes this year, worrying markets about demand just hours after government data showed an unexpected, large build in U.S. crude oil stocks.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.02% from its previous close of 7.01% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.97% from its previous close of 6.96% on Wednesday.