Bond yields were trading higher on Wednesday after India's merchandise exports in May rose by 20.55 per cent to $38.94 billion, while the trade deficit ballooned to a record $24.29 billion, according to the government data released on Wednesday. Imports during May 2022 grew by 62.83 per cent to $63.22 billion.
On the global front, U.S. Treasury yields climbed to their highest levels in a decade on Tuesday as investors raised bets that the Federal Reserve will hike rates by 75 basis points when it concludes its two-day meeting on Wednesday. Furthermore, oil prices dropped on worries over fuel demand ahead of a U.S. Federal Reserve meeting which is expected to see the central bank to hike rates by at least 75 basis points to combat inflation.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.60% from its previous close of 7.58% on Tuesday.
The benchmark five-year interest rates were trading 3 basis points higher at 7.40% from its previous close of 7.37% on Tuesday.