Bond yields edged higher on Thursday after Fitch Ratings raised its forecast for India's economic growth to 6.3 per cent for current fiscal year 2023-24 from 6 per cent it had predicted previously. This is primarily because of a stronger outturn in the first quarter and near-term momentum.
In the global market, U.S. Treasury yields were flat to slightly lower on Wednesday, after posting gains earlier, partly weighed down by comments from Atlanta Federal Reserve President Raphael Bostic, who urged the Fed to wait longer for the impact of previous interest rate hikes to work through the economy before raising rates again. Furthermore, oil prices gained a dollar a barrel on Wednesday as U.S. corn and soybean prices raced to multi-month highs, raising expectations that crop shortfalls around the globe could lower biofuels blending and increase oil demand.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.08% from its previous close of 7.06% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points higher at 7.03% from its previous close of 7.00% on Wednesday.