Bond yields were trading higher on Wednesday after the growth of eight core infrastructure industries grew by 8.4 per cent in April 2022 as against 62.6 per cent expansion in the year-ago period, on the back of better performance by coal, refinery products and electricity segments.
On the global front, U.S. Treasury yields rose sharply on Tuesday, with most maturities hitting one-week highs, as investors re-focused on inflation risks after euro zone inflation climbed to a record high this month and after upbeat U.S. economic data. Furthermore, Oil prices rose after European Union leaders agreed to a partial and phased ban on Russian oil and China ended its COVID-19 lockdown in Shanghai.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.43% from its previous close of 7.41% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.22% from its previous close of 7.21% on Tuesday.