Bond yields traded flat on Thursday after global rating agency Fitch Ratings has raised India's medium-term growth potential by 0.2 percentage points to 6.4 per cent compared with 6.2 per cent previously. The revision comes on the back of a sharper rise in India's labour force participation rate in recent years. While the agency expects this growth to continue, it may happen at a slower pace going forward.
In the global market, reasury yields spiked on Wednesday after a Treasury debt auction suggested concerns about unsustainable government deficits are eroding demand for federal debt. Furthermore, Oil prices rose on Wednesday after reports that Israel could be preparing to strike Iranian nuclear facilities raised fears of a supply disruption in the Middle East.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.25% on Wednesday.
The benchmark five-year interest rates were trading flat with its previous close of 5.95% on Wednesday.
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