Bond yields traded higher on Wednesday despite Crisil’s research wing's report stating that eight states most affected by the COVID-19 pandemic account for over 60 per cent of the Gross Domestic Product (GDP) and the extended restrictions will slam the economy harder. The eight states, which include Maharashtra, Gujarat and Tamil Nadu, among others also account for 58 per cent of the employment.
In the global market, U.S. Treasury yields fell on Tuesday as Federal Reserve Chair Jerome Powell shed no new light on the government's economic response to the coronavirus pandemic and the market looked ahead to the return of the 20-year bond. Furthermore, oil prices dipped as concerns over the lasting economic fallout from the coronavirus pandemic outweighed signs of improving demand and production cuts by major oil producers.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.04% from its previous close of 6.03% on Tuesday.
The benchmark five-year interest rates were trading basis point lower at 5.55% from its previous close of 5.56% on Tuesday.