Bond yields edged higher on Wednesday, as traders remained concerned with economic think-tank NCAER report that India's GDP growth is likely to be 6.2 per cent during the current fiscal, down from 6.8 per cent in 2018-19, on account of flat growth in agriculture sector.
In the global market, the spread between US shorter- and longer-dated Treasury yields contracted on Tuesday, as shorter-dated yields rose on $38 billion in three-year debt supply and nagging worries about US-China trade tensions pushed down longer-dated yields. Furthermore, Oil prices steadied after falling at the start of the session, with the potential for damage to the global economy and fuel demand from the intensifying Sino-US trade dispute continuing to cast a shadow over the market.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 6.38% from its previous close of 6.34% on Tuesday.
The benchmark five-year interest rates were trading flat at its previous close of 6.31% on Tuesday.