Bond yields traded lower on Wednesday, as Index of Industrial Production (IIP), contracted by 16.7% in March 2020 mainly on account of poor show by mining, manufacturing and electricity sector due to the nationwide lockdown.
In the global market, investors looking for safety as the economy sputters amid the COVID-19 pandemic sent U.S. Treasury yields lower on Tuesday, with strong demand for 10-year notes at an auction. Furthermore, oil prices fell on worries about a possible second wave of coronavirus cases in countries starting to ease lockdowns, while industry data showed a rise in U.S. crude inventories.
Back home, the yields on new 10 year Government Stock were trading 7 basis points lower at 6.09% from its previous close of 6.16% on Tuesday.
The benchmark five-year interest rates were trading 5 basis points lower at 5.60% from its previous close of 5.65% on Tuesday.