Bond yields edged lower on Thursday amid Crisil Ratings stated that India’s real GDP growth will moderate to 6.8 per cent in FY2025 from the 7.6 per cent expected in the ongoing fiscal. Higher interest rates and demand being tempered by lower fiscal impulse will lead to the moderation of growth.
In the global market, the 10-year Treasury yield slipped on Wednesday as investors digested testimony about monetary policy from Federal Reserve Chairman Jerome Powell, saying the central bank is not quite ready to cut rates. Furthermore, oil prices edged up about 1% on Wednesday on a smaller-than-expected build in U.S. crude inventories, a big withdrawal from distillate and gasoline stocks and remarks by the U.S. Federal Reserve chief that he still expects interest rate cuts this year.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.03% from its previous close of 7.05% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.04% from its previous close of 7.05% on Wednesday.