Bond yields edged higher on Thursday as global ratings agency Fitch Ratings in its latest Global Economic Outlook (GEO) has revised its Gross Domestic Product (GDP) growth estimates for India upward to 7.0 per cent for the financial year 2024-25 (FY25) from 6.5 per cent its earlier projection in December.
In the global market, U.S. Treasury yields ticked up on Wednesday following Tuesday's higher-than-expected consumer price inflation for February, raising concerns that the Federal Reserve may hold off on rate cuts beyond investor expectations. Furthermore, Crude oil futures traded higher on Thursday following drone attacks by Ukraine on Russian refineries. Another factor that boosted the price was the significant drop in the crude oil inventories in the US.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.04% from its previous close of 7.03% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.04% from its previous close of 7.03% on Wednesday.