Bond yields traded lower on Wednesday even after India’s merchandise exports rose by 45.76% in August 2021 as compared to same period of last year on account of healthy growth in segments like engineering, petroleum products, gems and jewellery and chemicals.
In the global market yields, U.S. government bond yields fell on Tuesday after data showed consumer prices increased at their slowest pace in six months in August, suggesting that inflation had probably peaked and removing urgency from the next move by the Federal Reserve. Furthermore, oil prices climbed after industry data showed a larger than expected drawdown in crude oil stocks in the United States, the world's largest oil consumer, and on expectations that demand will recover as vaccine roll-outs widen.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.16% from its previous close of 6.19% on Tuesday.
The benchmark five-year interest rates were trading 3 basis points lower at 5.60% from its previous close of 5.63% on Tuesday.