Bond yields traded higher on Wednesday as the India Meteorological Department (IMD) said that India’s stalled monsoon is likely to gain momentum in the next 3-4 days and could cover key rice, soybean, cotton and sugarcane growing regions in the southern, central and western states.
In the global market, U.S. Treasury yields fell on Tuesday, in line with declines in Europe and the UK, as investors priced in market expectations that the Federal Reserve is near the end of its rate-hiking cycle, with some sectors of the economy having shown signs of moderation. Furthermore, Oil prices fell on Tuesday as uncertainty around Chinese oil demand continues to grow - particularly in the near-term.
Back home, the yields on new 10-year Government Stock were trading 1 basis point higher at 7.06% from its previous close of 7.05% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.01% from its previous close of 6.99% on Tuesday.