Bond yields traded higher on Wednesday despite Asian Development Bank (ADB) has revised down India's Gross domestic product (GDP) growth forecast to 10 percent for the current fiscal (FY22) from 11 percent predicted earlier, citing the adverse impact of the second wave of the pandemic.
In the global market yields, Longer-dated U.S. Treasury yields edged higher on Tuesday after an auction of 20-year bonds was well received and investors waited for the end of this week's Federal Reserve meeting that may shed light on when its massive purchase of government debt will begin to ease. Furthermore, oil prices rose, extending overnight gains, after industry data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes, highlighting tight supply as demand improves.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.14% from its previous close of 6.12% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.59% from its previous close of 5.58% on Tuesday.