Bond yields traded flat on Thursday after data released by the Controller General of Accounts (CGA) showed that India’s fiscal deficit -- the difference between the government’s revenue and expenditure--has reached 62.3% of the budget estimate (BE) as of the April-November period of the fiscal year ending March 31, 2026.
In the global market, The U.S. 10-year Treasury yield moved higher on Wednesday, yet ended 2025 lower amid Federal Reserve rate cuts and sticky-but-trending-lower inflation. Furthermore, oil prices fell on Wednesday and recorded an annual loss of nearly 20%, as expectations of oversupply increased in a year marked by wars, higher tariffs, increased OPEC+ output and sanctions on Russia, Iran and Venezuela.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.58% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.31% from its previous close of 6.30% on Wednesday.