Bond yields traded marginally lower on Wednesday despite the International Monetary Fund (IMF) raised the FY24 economic growth forecast for India by 20 basis points to 6.1 per cent, citing the country’s stronger-than-expected growth momentum in the March quarter of FY23.
In the global market, U.S. Treasury yields advanced on Tuesday, as a still stable economy despite a slew of interest rate increases by the Federal Reserve has reduced the chances of recession and raised the possibility of two more hikes this year. Furthermore, oil prices rose to three-month highs on Tuesday, as signs of tighter supplies and pledges by Chinese authorities to shore up the world's second-biggest economy lifted sentiment.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.09% from its previous close of 7.10% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.07% from its previous close of 7.09% on Tuesday.
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