Bond yields traded higher on Monday as Moody's Ratings has said that Indian economy is in a sweet spot, with a mix of solid growth and moderating inflation, and forecasted a 7.2 per cent Gross Domestic Product (GDP) growth in the 2024 calendar year followed by 6.6 per cent in 2025 and 6.5 per cent in 2026.
In the global market, the 10-year Treasury yield was marginally higher on Friday, capping an eventful week of inflation data and comments from Federal Reserve Chair Jerome Powell suggesting the central bank may not be as aggressive on its rate-cutting campaign going forward. Furthermore, Oil prices settled down more than 2% on Friday as investors fretted about weaker Chinese demand and a potential slowing in the pace of U.S. Federal Reserve interest rate cuts.
Back home, the yields on new 10 year Government Stock were trading 11 basis points higher at 6.93% from its previous close of 6.82% on Thursday.
The benchmark five-year interest rates were trading 11 basis points higher at 6.91% from its previous close of 6.80% on Thursday.
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