Bond yields traded higher on Wednesday as the RBI Deputy Governor said India was in a sweet spot to grow robustly, despite global turmoil and monsoon risks to growth, and to do so, developing credit markets was essential.
In the global market, U.S. Treasury yields gained ground on Tuesday, with the benchmark 10-year note hitting its highest level in over a week after better-than-expected economic data while comments from a Federal Reserve official indicated the central bank could hold interest rates high for an extended period. Furthermore, oil prices rose a dollar a barrel on Tuesday to their highest since November, after Saudi Arabia and Russia extended their voluntary supply cuts to the end of the year, worrying investors about potential shortages during peak winter demand.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.22% from its previous close of 7.20% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.20% from its previous close of 7.18% on Tuesday.