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Bond yields edge higher on Thursday

21 Sep 2023 Evaluate

Bond yields edged higher on Thursday even after Asian Development Bank (ADB) marginally lowered India's growth forecast to 6.3 per cent for the current financial year from its earlier projection of 6.4 per cent on account of slowing exports and the likely impact of erratic rainfall on agriculture output.

In the global market, U.S. Treasury yields rose on Wednesday after the Federal Reserve signaled it intends to implement another rate hike before the end of 2023, pushing two closely watched notes to multi-year highs. Furthermore, Oil prices fell on Wednesday after the U.S. Federal Reserve left interest rates unchanged as widely expected, but stiffened its hawkish stance with a further rate increase projected by the end of the year.

Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.16% from its previous close of 7.15% on Wednesday.

The benchmark five-year interest rates were trading 3 basis points higher at 7.18% from its previous close of 7.15% on Wednesday.

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