Bond yields traded lower on Thursday as Care Ratings revised down its forecast for GDP growth to 10.2 per cent in 2021-22 from earlier projection of 10.7-10.9 per cent, with economic activities getting affected across the country due to curbs imposed by states amid surge in COVID-19 cases.
In the global market, U.S. Treasury yields remained range-bound on Wednesday even after an auction of 20-year bonds showed strong demand, a pattern analysts expect to persist until next week's economic data releases and Federal Reserve policy meeting. Furthermore, oil prices fell for a third day as a surprise build in U.S. crude inventories and a resurgence of COVID-19 cases in India and Japan raised concerns that a recovery in global economy and fuel demand may slow.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.05% from its previous close of 6.07% on Tuesday.
The benchmark five-year interest rates were trading 9 basis points higher at 5.54% from its previous close of 5.45% on Tuesday.