Bond yields traded flat on Wednesday amid a private report said that India’s second wave of virus cases will hit the economy by prompting consumers to save rather than spend, unlike last year’s contraction that was driven mainly by supply disruptions.
In the global market yields, Nominal U.S. Treasury yields remained little changed on Tuesday but strong consumer demand as seen in Walmart and Home Depot results provided fodder for investors who take issue with the Federal Reserve's narrative of transient inflation. Furthermore, oil prices fell for a second day on the potential of Iranian supply returning and as investors sold on speculation that inflation fears might lead the U.S. Federal Reserve to raise interest rates, which could limit economic growth.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 5.97% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.58% from its previous close of 5.57% on Tuesday.