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Bond yields trade flat on Thursday

01 Jan 2026 Evaluate

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.

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