Bond yields were edged lower on Wednesday even after India’s industrial production rose 19.6 per cent in May 2022. Index of Industrial Production (IIP) growth was recorded at 27.6 percent in May last year, mainly due to the low-base effect.
On the global front, the benchmark U.S. two-year/10-year yield curve on Tuesday posted the largest inversion since at least 2010, on growing fears about the world's largest economy tipping into recession amid continued aggressive tightening by the Federal Reserve. Furthermore, oil prices fell as U.S. inventory data showed buildups in crude oil and refined products amid rising fears of a global economic slowdown.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.36% from its previous close of 7.39% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.16% from its previous close of 7.17% on Tuesday.