Bond yields traded lower on Wednesday despite preliminary data of the commerce ministry showed that India's exports grew by 28.51 per cent to $8.67 billion during February 1-7 on account of healthy growth in sectors such as petroleum, engineering and gems and jewellery.
In the global market, the benchmark 10-year U.S. Treasury yield hit a multi-year high on Tuesday, as yields continue to ascend ahead of a key inflation reading this week and expectations that the U.S. Federal Reserve will start tightening monetary policy. Furthermore, oil prices nudged up following two sessions of losses after industry data showed an unexpected drop in U.S. crude and fuel stocks, offsetting concerns of a possible rise in supplies from Iran.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.79% from its previous close of 6.81% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points lower at 6.10% from its previous close of 6.12% on Tuesday.