Bond yields edged higher on Wednesday as Finance Ministry data showed that there has been a rise of 133 per cent in collection of major cess and surcharges levied by the Central government on various products during the five-year period between 2017-18 and 2022-23, as it went up from Rs 2,18,553 crore in 2017-18 to Rs 5,10,549 crore in 2022-23.
In the global market, the yield on the 2-year U.S. Treasury note topped 5% on Tuesday, and rose to its highest level since 2007 as investors assessed comments from Federal Reserve Chairman Jerome Powell, who said the central bank may need to increase the pace of interest rate hikes again. Furthermore, oil prices fell on Tuesday after comments from U.S. Federal Reserve Chair Jerome Powell stoked rate hike fears, the dollar strengthened and top crude importer China issued weak data.
Back home, the yields on new 10-year Government Stock were trading 5 basis points higher at 7.46% from its previous close of 7.41% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 7.38% on Monday.