Bond yields traded lower on Wednesday even after S&P Global Ratings in its report titled 'China Slows India Grows' has said India's GDP growth rate will rise to 7 per cent by 2026 compared to 4.6 per cent for China. It expects Asia-Pacific's growth engine to shift from China to South and Southeast Asia.
In the global market, U.S. Treasury yields slipped on Tuesday, as investors digested optimistic commentary from a Federal Reserve official and awaited the release of data that could provide hints about the economic outlook. Furthermore, oil prices jumped on Tuesday, settling up about 2% on the possibility OPEC+ will extend or deepen supply cuts, a storm-related drop in Kazakh oil output and a weaker U.S. dollar.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.25% from its previous close of 7.27% on Tuesday.
The benchmark five-year interest rates were trading flat with its previous close of 7.28% on Tuesday.