Bond yields traded flat on Wednesday, as Fitch Ratings stated that India continues to lag way behind in COVID vaccination, and the negative outlook on sovereign rating signifies the rising debt-to-GDP ratio. In April 2021, Fitch affirmed India's sovereign rating at 'BBB-' with a negative outlook. The outlook was changed to 'negative' from 'stable' in June last year on grounds that the pandemic had significantly weakened the country's growth outlook and exposed the challenges associated with a high public-debt burden.
In the global market yields, U.S. government bond yields rose for a second straight day on Tuesday, building on Friday's climb in the wake of the government's jobs report and ahead of this week's host of scheduled Treasury auctions. Furthermore, oil prices rose, paring overnight losses, with producers in the U.S. Gulf of Mexico struggling to restart operations nine days after Hurricane Ida swept through.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.19% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points lower at 5.61% from its previous close of 5.63% on Tuesday.