Bond yields traded higher on Wednesday, as India's Gross Domestic Product (GDP) has grown by 8.4 per cent in the second quarter (July-September) of 2021-22, mainly due to waning low base effect and as coronavirus related disruptions eased significantly in the aftermath of a devastating second wave.
In the global market, Testimony by Federal Reserve Chair Jerome Powell on Tuesday struck a hawkish chord in the U.S. Treasury market, pushing up shorter-term yields, which had fallen earlier in the session as part of an across-the-curve rally sparked by concerns over the Omicron coronavirus variant. Furthermore, oil prices clawed back some losses after steep falls in the previous session, as major producers prepared to discuss how to respond to the threat of a hit to fuel demand from the Omicron variant.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.35% from its previous close of 6.32% on Tuesday.
The benchmark five-year interest rates were trading 3 basis points higher at 5.72% from its previous close of 5.69% on Tuesday.