Bond yields traded higher on Thursday after Revenue Secretary Sanjay Malhotra’s statement that the direct tax slabs rejig announced in the Union Budget amounting to savings of Rs 17,500 for the middle class along with an increase in the rebate limit to Rs 7 lakh in the new tax regime last year is ‘sufficient’ relief over a period of two years.
In the global market, Treasury yields slipped on Wednesday as investors looked ahead to a fresh batch of economic data and considered the outlook for the U.S. economy. Furthermore, oil prices settled higher on Wednesday, supported by large declines in U.S. crude and fuel stocks, but hovered close to their lowest level in six weeks due to concerns over weak global demand.
Back home, the yields on new 10 year Government Stock were trading 11 basis points higher at 7.07% from its previous close of 6.96% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.00% from its previous close of 6.90% on Wednesday.