Bond yields traded higher on Wednesday, as traders took some support after ratings agency Moody’s upgraded outlook on the Government of India’s ratings to ‘stable’ from ‘negative’, and affirmed India’s sovereign rating. The sovereign rating by Moody’s stands at ‘Baa3’- which is the lowest investment grade, just a notch above junk status.
In the global market, 10-year U.S. Treasury yield climbed back on Wednesday, ahead of the release of ADP’s September employment change report due later in the morning. Furthermore, US crude oil has hit a seven-year high on Wednesday morning amid rising demand.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.27% from its previous close of 6.26% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points higher at 5.80% from its previous close of 5.78% on Tuesday.