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Bond yields trade higher on Wednesday

06 Aug 2025 Evaluate

Bond yields traded higher on Wednesday as the Reserve Bank of India gives good growth guidance at its policy meeting. The central bank has retained the GDP growth forecast at 6.5% for fiscal year 2025-26, despite Trump’s US tariffs. It said the inflation outlook is favourable and is revised downwards to 3.1% vs 3.7% earlier for FY26.

In the global market, The 10-year Treasury yield was relatively unchanged Tuesday after the the prices portion of a key service sector survey came in stronger than expected and as investors weighed developments tied to President Donald Trump’s tariff policy. Furthermore, oil prices slipped on Tuesday as rising Opec+ supply and worries of weaker global demand countered concern about US President Donald Trump's threats to India over its Russian oil purchases.

Back home, the yields on new 10 year Government Stock were trading 07 basis points higher at 6.39% from its previous close of 6.32% on Tuesday. 

The benchmark five-year interest rates were trading 06 basis points higher at 6.13% from its previous close of 6.07% on Tuesday.

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