Bond yields traded higher on Wednesday despite equity foreign direct investment (FDI) into India declined sharply to $13.9 billion in April-July 2023 from $22.04 billion a year ago, showing the effect of the slowdown in global economic activity.
In the global market, U.S. five- and 10-year Treasury yields reached 16-year highs on Tuesday as oil prices gained, a day before the Federal Reserve will conclude its two-day monetary policy meeting. Furthermore, oil prices rose to 10-month highs on Tuesday before easing, as investors took profits following three sessions of gains that followed extended production cuts from Saudi Arabia and Russia.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.15% from its previous close of 7.14% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 7.16% on Monday.