Bond yields traded lower on Wednesday amid Finance Minister Nirmala Sitharaman has hinted that the current spike in international oil prices may upset provisions of her Union Budget for the fiscal year beginning April 1. Sitharaman added that it will certainly have an impact on the Indian economy.
In the global market, the yield on the benchmark U.S. 10-year Treasury climbed on Tuesday after reports that the European Union could reveal a plan for joint bond issuance and as concerns rose that rising oil prices will add to mounting inflation. Furthermore, crude oil prices jumped while Asian stocks regained their footing as investors assessed the impact of a worsening conflict in Ukraine and a new U.S. ban on Russian oil.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.87% from its previous close of 6.89% on Monday.
The benchmark five-year interest rates were trading 1 basis points lower at 6.20% from its previous close of 6.21% on Monday.