Bond yields were trading higher on Wednesday after Commerce and Industry Ministry in its latest data has indicated that India's merchandise exports rose by 24.22 percent to $38.19 billion in April 2022 as compared to $30.75 billion in April 2021 on account of healthy performance by sectors like petroleum products, electronic goods, and chemicals. India's merchandise imports in April 2022 rose to $58.26 billion from $46.04 billion recorded in April 2021, posting year-on-year growth of 26.55 per cent. The trade deficit in April 2022 widened to $20.07 billion from $15.29 billion recorded in the same month last year posting an increase of 31.23 per cent.
On the global front, U.S. benchmark 10-year Treasury yields backed off the 3% level on Tuesday, as the recent steep sell-off drew buyers and prompted investors to cover short positions ahead of an expected Federal Reserve decision to deliver an aggressive 50 basis-point interest-rate hike to contain soaring inflation. Furthermore, oil prices rose after industry data showed drawdowns in U.S. crude and fuel stockpiles, raising supply concerns and offsetting worries about slowing demand from top importer China.
Back home, the yields on new 10 year Government Stock were trading 25 basis points higher at 7.36% from its previous close of 7.11% on Monday.
The benchmark five-year interest rates were trading 23 basis points higher at 7.05% from its previous close of 6.82% on Monday.