Bond yields traded higher on Wednesday as Asian Development Bank (ADB) in its latest Asian Development Outlook has upgraded India’s growth projection by 0.7 percentage points to 7.2% for fiscal year ending March 2026 from 6.5% projected in September release. It noted that growth will be driven primarily by robust domestic consumption supported by recent tax cuts.
In the global market, yield on the 10-year Treasury was little changed on Tuesday as investors digested the latest jobs and employment data and awaited the Federal Reserve’s interest rate decision this week. Furthermore, oil prices fell on Tuesday, extending losses from the 2% drop in the previous session, with markets keeping a close eye on peace talks to end Russia’s war in Ukraine and a looming decision on U.S. interest rates.
Back home, the yields on new 10 year Government Stock were trading 5 basis points higher at 6.66% from its previous close of 6.61% on Tuesday.
The benchmark five-year interest rates were trading 4 basis points higher at 6.33% from its previous close of 6.29% on Tuesday.
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