Bond yields edged lower on Wednesday even after International Monetary Fund (IMF) raised India’s growth projection for 2024-25 (FY25) by 20 basis points (bps) to 6.5 per cent in its World Economic Outlook (WEO) update, citing buoyant domestic spending and improved global growth prospects.
In the global market, the 10-year Treasury yield was lower Tuesday as the first Federal Reserve policy meeting of 2024 kicked off and traders parsed through fresh economic data. Furthermore, oil prices rose Tuesday after the International Monetary Fund boosted its global growth forecast for the year and as the market waited to see how the U.S. will respond to a deadly drone attack on its forces in the Middle East.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.14% from its previous close of 7.15% on Tuesday.
The benchmark five-year interest rates were trading flat with its previous close of 7.02% on Tuesday.