Bond yields traded higher on Wednesday, as finance minister Nirmala Sitharaman has exhorted ministries to aim to achieve more than their capital expenditure (capex) targets for this fiscal (FY22), highlighting that enhanced spending will play a critical role in revitalising the economy post-COVID pandemic. She also urged the ministries and their Central Public Sector Enterprises (CPSEs) to ensure clearance of Micro, Small and Medium Enterprises (MSME) dues by July 31.
In the global market yields, U.S. Treasury yields hugged the unchanged mark on Tuesday as the market waited to see how June U.S. employment data, due later this week, might affect the Federal Reserve's monetary policy stance. Furthermore, oil prices extended the previous day's small gains after an industry report showed U.S. crude stockpiles fell last week, overriding trader and investor concerns about transportation curbs in some countries as COVID-19 cases surge.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.05% from its previous close of 6.03% on Tuesday.
The benchmark five-year interest rates were trading 4 basis points higher at 5.71% from its previous close of 5.67% on Tuesday.