Bond yields traded higher on Wednesday as Finance Minister Nirmala Sitharaman has said the lower-than-expected Gross Domestic Product (GDP) growth of 5.4 per cent in the second quarter (Q2) was a ‘temporary blip’ and the economy will see healthy growth in the coming quarters. She said India has seen ‘steady and sustained’ growth and its GDP growth rate has averaged 8.3 per cent in the last three years.
In the global market, U.S. Treasury yields were little changed on Tuesday as investors parsed economic data due ahead of the Federal Reserve’s next interest rate decision. Furthermore, oil prices eased about 1% to a one-week low on Tuesday on demand worries following the release of negative economic news from Germany and China, while investors remained cautious ahead of a U.S. Federal Reserve decision on interest rates.
Back home, the yields on new 10 year Government Stock were trading 11 basis points higher at 6.86% from its previous close of 6.75% on Tuesday.
The benchmark five-year interest rates were trading 11 basis points higher at 6.74% from its previous close of 6.63% on Tuesday.
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