Bond yields traded lower on Tuesday as Fitch Ratings has lowered India’s Gross Domestic Product (GDP) growth projections to 6.4 per cent for FY27 from 6.7 per cent estimated earlier in March, as rising prices erode real incomes and dampen consumer spending, amid resilient capital expenditure.
In the global market, U.S. Treasury yields moved higher on Monday, as investors weighed the impact from Middle East tensions and the diminishing likelihood that the Federal Reserve will lower interest rates anytime soon. Furthermore, Oil prices inched up on Tuesday after Iran and Israel left the door open to a possible resumption of attacks on each other, though they had called a halt to hostilities following an appeal from U.S. President Donald Trump.
Back home, the yields on new 10 year Government Stock were trading 04 basis points lower at 6.90% from its previous close of 6.94% on Monday.
The benchmark five-year interest rates were trading 08 basis points lower at 6.51% from its previous close of 6.59% on Monday.