Bond yields edged flat on Wednesday with data released by the Central Board of Direct Taxes showing that the government’s direct tax-to-GDP ratio stood at a 23-year high of 6.11% in FY23. The Centre’s direct tax collections rose 17.8% year-on-year at Rs 16.6 trillion in FY23. Corporate tax collections during the year stood at Rs 8.26 trillion, up 16% on year, and income tax collections stood at Rs 8.33 trillion, 19.6% higher on year.
In the global market, treasury yields rose on Tuesday as investors await economic growth and inflation data later in the week that could influence when the Federal Reserve decides to cut interest rates. Furthermore, oil prices settled lower on Tuesday as traders focused on rebounding crude output in parts of the U.S., along with rising supply in Libya and Norway, rather than risks to supply posed by conflict in Europe and the Middle East.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 7.17% on Tuesday.
The benchmark five-year interest rates were trading flat with its previous close of 7.04% on Tuesday.