Bond yields edged higher on Wednesday despite Moody’s Investors Service cut its growth forecast for India to 5.3 per cent for 2020 from 5.4 per cent estimated earlier, as it expects the coronavirus outbreak to dampen domestic demand globally.
In the global market, U.S. Treasury yields rose from all-time lows on Tuesday as global oil and stock markets rebounded on optimism that governments would take steps to reboot economies impacted by the global spread of coronavirus. Furthermore, oil prices climbed for a second day, lifted by hopes that U.S. producers will cut output, but gains were limited compared with Monday's crash after Saudi Arabia and Russia triggered a price war.
Back home, the yields on new 10 year Government Stock were trading 7 basis points higher at 6.13% from its previous close of 6.06% on Monday.
The benchmark five-year interest rates were trading 7 basis points higher at 5.66% from its previous close of 5.59% on Monday.