Bond yields traded higher on Wednesday, as CRISIL has projected India’s economy to grow by 11 per cent in the next fiscal year against expected contraction of 8 per cent in 2020-21.
In the global market yields, U.S. Treasury yields dropped on Tuesday, pulling back from a recent 13-month high on the benchmark note, as investors bought back bonds in a sell-off that market participants have deemed overextended. Furthermore, oil ticked higher, after falling for two straight sessions, with investors looking ahead to U.S. inventories data due later in the day for pointers on where prices will head next.
Back home, the yields on new 10 year Government Stock were trading 6 basis points higher at 6.26% from its previous close of 6.20% on Tuesday.
The benchmark five-year interest rates were trading 4 basis points higher at 5.89% from its previous close of 5.85% on Tuesday.