Bond yields edged lower on Wednesday despite India’s services sector witnessed a fastest growth in the month of April, with demand strength promoting the fastest increases in new business and output in close to 13 years. Companies became more optimistic towards future business activity, but job creation remained negligible.
In the global market, U.S. Treasury yields lower on Tuesday despite market expectations that interest rates will stay higher for longer, as investors bought the dip on Monday's sell-offs. Furthermore, Oil prices sank to a five-week low on Tuesday on concerns about the economy as U.S. politicians discuss ways to avoid a debt default and investors prepare for more rate hikes this week.
Back home, the yields on new 10-year Government Stock were trading 8 basis points lower at 7.02% from its previous close of 7.10% on Tuesday.
The benchmark five-year interest rates were trading 5 basis points lower at 6.95% from its previous close of 7.00% on Tuesday.