Bond yields were trading lower on Wednesday after RBI data showed that operating profit growth of listed private companies decelerated across broad sectors in the January-March quarter of 2021-22, on the back of rise in expenditure. Operating profit of manufacturing companies decelerated sharply to 7 per cent in the fourth quarter of last fiscal as against 70 per cent in the corresponding quarter of the preceding fiscal.
On the global front, U.S. Treasury yields rose on Tuesday as the risk-off mode which weighed on U.S. markets last week took a pause, lifting stocks as investors returned from a long holiday weekend. Furthermore, oil prices skidded amid a push by U.S. President Joe Biden to bring down soaring fuel costs, including pressure on major U.S. firms to help ease the pain for drivers during the country's peak summer demand.
Back home, the yields on new 10 year Government Stock were trading 8 basis points lower at 7.40% from its previous close of 7.48% on Tuesday.
The benchmark five-year interest rates were trading 6 basis points lower at 7.22% from its previous close of 7.28% on Tuesday.