Bond yields traded lower on Wednesday, as India’s service sector activity plummets at historic rate in April. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index fell to 5.4 in April from 49.3 in March.
In the global market, U.S. Treasury yields rose as plans to reopen major economies boosted risk appetite on Tuesday, a day after the Treasury Department announced it would borrow a record amount of almost $3 trillion this quarter. Furthermore, oil prices fell, ending a multi-day streak of gains, as investors focused on oversupply risks after U.S. crude inventories rose more than expected amid a slump in demand caused by restrictions to halt the coronavirus spread.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.04% from its previous close of 6.07% on Tuesday.
The benchmark five-year interest rates were trading 6 basis points lower at 5.57% from its previous close of 5.63% on Tuesday.