Bond yields were trading lower on Wednesday after Centre for Monitoring Indian Economy (CMIE) data showed the rate of unemployment in India rose to 7.8 per cent in June due to a sharp jump in unemployment in rural areas.
On the global front, benchmark U.S. Treasury yields tumbled to one-month lows on Tuesday and a key part of the yield curve inverted for the first time in three weeks as economic worries dented risk appetite and increased demand for safe-haven U.S. debt. Furthermore, oil prices rose as much as nearly 3% before paring some gains as investors piled back into the market after a heavy rout in the previous session, with supply concerns returning to the fore even as worries about a global recession linger.
Back home, the yields on new 10 year Government Stock were trading 10 basis points lower at 7.29% from its previous close of 7.39% on Tuesday.
The benchmark five-year interest rates were trading 8 basis points lower at 7.09% from its previous close of 7.28% on Tuesday.