Bond yields traded flat on Wednesday after Fitch Ratings has kept India's sovereign rating unchanged at 'BBB-' with a negative outlook. It stated that the rating balances a still-strong medium-term growth outlook and external resilience from solid foreign-reserve buffers against high public debt, a weak financial sector and some lagging structural issues.
In the global market, U.S. Treasury yields rose on Tuesday in choppy trading after data showed that U.S. retail sales increased more than expected in October and before the U.S. Treasury's sale of 20-year bonds on Wednesday. Furthermore, oil prices dropped after U.S. gasoline stocks fell more than expected last week, which could heighten pressure on the Biden administration to release oil from emergency reserves to cap soaring gasoline prices.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.36% on Tuesday.
The benchmark five-year interest rates were trading 5 basis points lower at 5.77% from its previous close of 5.82% on Tuesday.
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