Bond yields ended marginally lower on Wednesday, as traders remained cautious with survey report showing that India’s service sector remained into contraction territory in the month of July, largely due to the COVID-19 pandemic and local restrictions. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index stood at 45.4 in July from 41.2 in June. Besides, market participants awaited the policy decision as well as commentary from the Monetary Policy Committee later this week.
In the global market, U.S. Treasury yields were little changed Tuesday amid concerns about a slowdown in growth. Furthermore, Oil prices fell for a third day on mounting concerns that the increasing spread of the Delta variant of the coronavirus in top consuming countries will cut fuel demand.
Back home, the yields on new 10-year Government Stock ended 1 basis point lower at 6.19% from its previous close of 6.20% on Tuesday.
The benchmark five-year interest rates ended 2 basis points lower at 5.71% from its previous close of 5.73% on Tuesday.