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Bond yields trade higher on Wednesday

25 Sep 2024 Evaluate

Bond yields traded higher on Wednesday as the Asian Development Bank (ADB) has retained India's Gross domestic product (GDP) growth forecast for the current fiscal (FY25) at 7 per cent and said that the economy is expected to accelerate in the coming quarters on improved farm output, and higher Government spending.

In the global market, the 2-year U.S. Treasury yield edged lower on Tuesday as market participants parsed a weaker-than-expected consumer confidence report. Furthermore, oil prices climbed about 2% to a three-week high on Tuesday on news of monetary stimulus from China, the world's top crude importer, and amid concerns that growing conflict in the Middle East could hit regional supply.

Back home, the yields on new 10 year Government Stock were trading 10 basis points higher at 6.86% from its previous close of 6.76% on Tuesday.

The benchmark five-year interest rates were trading 10 basis points higher at 6.78% from its previous close of 6.68% on Tuesday.

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