Bond yields edged flat on Wednesday as global ratings agency Moody's Investors Service has given a 'negative outlook' to credit worthiness of countries globally including India, for 2023, saying high prices of food and energy would curb economic growth and raise social tensions. It said tighter financial conditions and economic scarring will push some debt burdens to unsustainable levels, while rising borrowing costs will erode debt affordability.
In the global market, Treasury yields fell on Tuesday as markets after October’s producer price index figures came in less than expected, further confirming to investors that inflation may be easing. Furthermore, Oil prices fell as rising COVID-19 cases in China renewed fears of lower fuel consumption from the world's top crude importer. China, and jitters about the outcome of U.S. midterm elections.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 7.26% on Monday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.13% from its previous close of 7.12% on Monday.