Bond yields traded lower on Wednesday with private report that the country’s economy is likely to show a double-digit contraction in the April-June quarter due to the restriction on economic activities on account of the COVID-19 pandemic.
In the global market, U.S. Treasury yields fell on Tuesday as a worsening COVID-19 caseload aggravated concerns about reopening businesses too quickly. Furthermore, oil prices eased in early trade as industry data showing a build in U.S. crude stockpiles and a forecast for U.S. crude output to fall less than anticipated in 2020 added to worries about oversupply.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 5.77% from its previous close of 5.79% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points lower at 4.97% from its previous close of 4.99% on Tuesday.