Bond yields traded higher on Wednesday amid Reserve Bank of India in its data said that India’s financial position with the rest of the world improved over the year. The country increased its overseas assets more than it increased its foreign liabilities, largely due to a rise in reserve assets. During the financial year 2023-24, the net claims of non-residents on India decreased by $5.5 billion.
In the global market, 2-year Treasury yield finished lower for the first time in four sessions on Tuesday as traders await Friday's PCE inflation data for May. Furthermore, Crude oil prices edged lower on Tuesday, pressured by a stronger dollar, while investors shifted focus to U.S. inflation data due this week.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.99% from its previous close of 6.98% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.02% from its previous close of 7.01% on Tuesday.