Bond yields traded higher on Wednesday even after domestic rating agency Care Ratings in its latest report has revised downward its gross domestic product (GDP) growth forecast for the current fiscal to 9.2 per cent from 10.2 per cent it had estimated earlier.
In the global market yields, U.S. Treasury yields climbed on Tuesday as inflation concerns helped drive a sell-off in equity markets while investors girded for a closely watched reading on consumer prices on Wednesday. Furthermore, oil prices rose, extending overnight gains, after industry data showed a drop in U.S. crude inventories, which reinforced OPEC's robust demand outlook, and as the shutdown of the biggest U.S. fuel pipeline headed into a sixth day.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.01% from its previous close of 6.00% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.55% from its previous close of 5.54% on Tuesday.