Bond yields edged marginally higher on Wednesday as Moody's Investors Service’s said that India's economic recovery is unlikely to be derailed by rising challenges to the global economy, higher inflation and tightening financial conditions, and affirmed a stable outlook for the country's rating Baa3.
In the global market, U.S. Treasury yields surged higher on Tuesday as investors responded to strong U.S. economic data by betting on further rate hikes from the Federal Reserve. Furthermore, Oil prices fell more than $1 on Wednesday to their lowest since before Russia invaded Ukraine as COVID-19 curbs in top crude importer China and expectations of more interest rate hikes spurred worries of a global economic recession and lower fuel demand.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.18% from its previous close of 7.17% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.03% from its previous close of 7.01% on Tuesday.