Bond yields traded marginally higher on Wednesday, as wholesale price-based inflation eased marginally to 12.07 per cent in June as crude oil and food items witnessed some softening in prices. However, WPI inflation remained in double digit for the third consecutive month in June, mainly due to a low base of last year. WPI inflation was (-) 1.81 per cent, in June 2020.
In the global market, long-dated U.S. Treasury yields rose on Tuesday after the Treasury Department drew weak demand for a $24 billion sale of 30-year bonds, which came after data showed inflation in June jumped more than expected. Furthermore, Oil prices fell on future demand concerns after data showed that China's first-half crude imports dropped, but were still holding near a one-week high amid concerns about supplies as the world recovers from the coronavirus pandemic.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.11% from its previous close of 6.10% on Tuesday.
The benchmark five-year interest rates were trading 3 basis points lower at 5.69% from its previous close of 5.72% on Tuesday.