Bond yields traded higher on Wednesday, after finance ministry in its latest Monthly Economic Review has said that the economic impact of the second wave of the COVID-19 pandemic is likely to be muted and there are visible signs of economic rejuvenation.
In the global market yields, U.S. Treasury yields hit their highest levels since mid-July on Tuesday, rising on the long end of the curve after the U.S. Senate passed a massive infrastructure bill, while a three-year note auction produced strong results. Furthermore, oil prices consolidated strong overnight gains as a bullish outlook for U.S. fuel demand outweighed concerns about mobility curbs in Asia with the spread of the highly infectious COVID-19 Delta variant.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.25% from its previous close of 6.23% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.75% from its previous close of 5.74% on Tuesday.