Bond yields traded flat on Wednesday, as Goods and Services Tax (GST) collection slipped below Rs 1 lakh crore in June for the first time in eight months as the second wave of the Covid pandemic and the resultant lockdowns hit businesses and the economy. At Rs 92,849 crore, GST collection is the lowest in 10 months since August 2020, when it was Rs 86,449 crore.
In the global market yields, U.S. Treasury yields fell on Tuesday, with the benchmark 10-year note poised for its longest streak of daily declines in 16 months as investors look for clues on the Federal Reserve's policy path and after data signaled the service sector expanded at a slower pace. Furthermore, oil prices steadied after a steep drop in the previous session, following the cancellation of talks among OPEC+ producers that raised the prospect that the world's major crude exporters will turn on the taps to gain market share.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.17% on Tuesday.
The benchmark five-year interest rates were trading 3 basis points lower at 5.80% from its previous close of 5.83% on Tuesday.