Bond yields traded lower on Wednesday despite Central Board of Direct Taxes’ (CBDT) statement that net direct tax collection grew 21 per cent to Rs 4.62 lakh crore so far this fiscal on higher advance tax mop-up. The first instalment of advance tax, which was due on June 15, showed collection rose 27.34 per cent to Rs 1.48 lakh crore.
In the global market, treasury yields retreated on Tuesday as bond traders digested another disappointing retail-sales report and other economic data, as well as comments by Federal Reserve officials ahead of the Juneteenth holiday. Furthermore, oil settled more than 1% higher on Tuesday due to escalating geopolitical risk in Europe and the Middle East, where wars continue to threaten global supply.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.97% from its previous close of 6.98% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.00% from its previous close of 7.01% on Tuesday.