Bond yields traded higher on Wednesday after investment through participatory notes (P-notes) in the domestic capital market rose to a 31-month high of Rs 87,132 crore at December-end, reflecting the bullish stance of FPIs.
In the global market yields, most U.S. Treasury yields fell slightly on Tuesday after U.S. Treasury Secretary nominee Janet Yellen said during Senate confirmation testimony that tax cuts enacted in 2017 for large corporations should be repealed. Furthermore, oil prices rose in early trade, adding to solid gains overnight, on expectations the incoming U.S. administration will go ahead with massive stimulus spending that would boost fuel demand and draw down crude stocks.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 5.94% from its previous close of 5.93% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 5.27% from its previous close of 5.28% on Tuesday.