Bond yields traded higher on Wednesday as Fitch Ratings said India remains committed to reducing the budget deficit over the medium term, despite its focus on higher public capex and demands of the coalition government.
In the global market, Treasury yields dipped on Tuesday ahead of the final major inflation prints before the Federal Reserve’s September meeting. Furthermore, oil prices edged down on Tuesday as weak Chinese demand offset supply disruptions from Tropical Storm Francine and as global oil oversupply risks continued to weigh on the market.
Back home, the yields on new 10 year Government Stock were trading 9 basis points higher at 6.94% from its previous close of 6.85% on Tuesday.
The benchmark five-year interest rates were trading 9 basis points higher at 6.83% from its previous close of 6.74% on Tuesday.
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