Bond yields edged higher on Thursday with Governor Shaktikanta Das’ statement that consumer price index-based inflation, the main yardstick for the Reserve Bank of India’s policy making, is likely to average 4.5 per cent in the next financial year and gross domestic product (GDP) growth is likely to stay above 7 per cent.
In the global market, Treasury yields rose Wednesday, with the 10-year yield hovering near 4.1% as investors focused on stronger-than-expected December retail sales and the latest remarks from Federal Reserve members. Furthermore, oil prices fell on Wednesday as a stronger U.S. dollar limited demand for greenback-denominated crude, though the rising risks of supply disruptions amid the intensifying conflict in the Red Sea curbed the losses.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.17% from its previous close of 7.16% on Wednesday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.05% from its previous close of 7.03% on Wednesday.