Bond yields edged higher on Wednesday as SBI Research anticipates India's GDP growth could touch 8 per cent in FY24, with strong performance across various economic indicators and favorable monsoon conditions. The report also highlights the potential impact of global economic resilience on India's growth trajectory.
In the global market, U.S. Treasury yields were higher Tuesday after a relatively weak 2-year auction and as traders weighed comments from Minneapolis Federal Reserve President Neel Kashkari about him not yet ruling out the potential for further rate hikes. Furthermore, oil prices gained more than $1 a barrel on Tuesday on the expectation that OPEC+ will maintain crude supply curbs at its June 2 meeting, while the start of U.S. summer driving season and a weaker dollar also boosted the commodity.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.00% from its previous close of 6.99% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.06% from its previous close of 7.04% on Tuesday.