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Bond yields trade higher on Wednesday

12 Feb 2025 Evaluate

Bond yields traded higher on Wednesday as Central Board of Direct Taxes (CBDT) in its latest data has showed that net direct tax collection grew 14.69 per cent to over Rs 17.78 lakh crore so far this fiscal (April 1, 2024, and February 10, 2025). Gross direct tax mop up till February 10 grew 19.06 per cent to more than Rs 21.88 lakh crore.

In the global market, U.S. Treasury yields were higher on Tuesday after testimony from Federal Reserve Chair Jerome Powell raised some doubt about the path toward lower rates. Furthermore, Oil prices climbed on Tuesday to a two-week high, as sanctions raised concerns about Russian and Iranian oil supplies, outweighing worries escalating trade tariffs would boost inflation and dampen global economic growth.

Back home, the yields on new 10 year Government Stock were trading 11 basis points higher at 6.80% from its previous close of 6.69% on Tuesday. 

The benchmark five-year interest rates were trading 12 basis points higher at 6.73% from its previous close of 6.61% on Tuesday.

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