Bond yields were trading higher on Wednesday, as index of industrial production (IIP) or factory output grew 1.7 per cent in February as against 1.3 per cent in January. The IIP had declined 3.2 per cent in February 2021. The industrial production jumped in February mainly on account of rise in the mining sector and power generation.
On the global front, U.S. Treasury yields moved lower on Tuesday, with the benchmark 10-year Treasury yield on track for its first decline in eight sessions after a reading on inflation showed an acceleration in March, but sparked hope higher prices may have peaked. Furthermore, oil prices climbed on worries that sliding output in sanctions-hit Russia, the world's second-biggest oil exporter, will tighten supply after Moscow said peace talks to resolve its invasion of Ukraine had come to a dead end.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 7.22% from its previous close of 7.18% on Tuesday.
The benchmark five-year interest rates were trading 8 basis points higher at 6.67% from its previous close of 6.59% on Tuesday.