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Bond yields trade flat on Tuesday

07 Oct 2025 Evaluate

Bond yields traded flat on Tuesday as World Bank in its South Asia Development Update has raised India’s growth forecast to 6.5 percent for FY26 from its earlier projection of 6.3 percent in June. However, considering the US’ tariff action, it has cut the forecast for the next fiscal (FY27) by 20 basis points to 6.3 per cent.

In the global market, U.S. Treasury yields moved higher on Monday as the U.S. government shutdown continued and investors monitored the state of the U.S. economy. Furthermore, oil prices gained about 1% on Monday after the OPEC+ production increase planned for November was more modest than expected, tempering some concerns about supply additions, though a soft outlook for demand is likely to cap near-term gains.

Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.51% on Monday.  

The benchmark five-year interest rates were trading flat with its previous close of 6.11% on Monday.  

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