Bond yields traded lower on Wednesday, as gross direct tax collection fell 31 percent to Rs 1,37,825 crore till June 15 of the first quarter of FY21 with advance corporate tax mop-up declining 79 percent amid coronavirus lockdown, which resulted in shuttering of most of the country's economic activities.
In the global market, U.S. Treasury yields rose on Tuesday as hopes of further fiscal stimulus boosted risk appetite, and after data showed a record rise in U.S. retail sales in May. Furthermore, oil prices retreated, weighed down by an increase in U.S. crude inventories and worries about a potential second wave of the coronavirus pandemic.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 5.83% from its previous close of 5.84% on Tuesday.
The benchmark five-year interest rates were trading flat with its previous close of 5.46% on Tuesday.