Bond yields traded higher on Wednesday after India’s merchandise exports rose by 27.16% in November 2021 as compared to same period of last year on the back of good performance by sectors like petroleum products, engineering goods and electronic items. The exports stood at $23.62 billion in November 2020. The trade deficit widened to $22.91 billion in November 2021 from $10.19 billion from the year-ago period.
In the global market, U.S. Treasury yields rose across the curve on Tuesday but were well off session highs after data showed producer prices increased at the highest annual rate since 2010, solidifying expectations of a hawkish statement from the Federal Reserve this week. Furthermore, oil prices fell for a third day on growing expectations that supply growth will outpace demand growth next year, even though the Omicron coronavirus variant is not seen curbing mobility as sharply as earlier COVID-19 variants.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.36% from its previous close of 6.35% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points higher at 5.73% from its previous close of 5.71% on Tuesday.