Bond yields traded lower on Wednesday despite International Monetary Fund (IMF) raised its India’s GDP growth forecast for the current financial year by 20 basis points (bps) to 6.3%, mainly due to stronger-than-expected consumption during April-June quarter.
In the global market, U.S. Treasuries rallied on Tuesday, pushing two-year yields to their lowest in a month, due to a combination of demand for safe-haven assets amid ongoing violence in the Middle East and dovish Federal Reserve remarks that suggested the central bank may be done raising interest rates. Furthermore, oil prices settled lower on Tuesday, but bounced off session lows as concerns eased about potential supply disruptions from the battle between Israel and the Palestinian Islamist group Hamas, though traders remained watchful.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 7.31% from its previous close of 7.35% on Tuesday.
The benchmark five-year interest rates were trading 4 basis points lower at 7.35% from its previous close of 7.39% on Tuesday.
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