Bond yields traded higher on Wednesday as seasonally adjusted HSBC India Services PMI Business Activity Index grew to 58.8 in May from 58.7 in April. However, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- eased to 59.3 in May as against 59.7 in April.
In the global market, U.S. Treasurys pared back earlier gains on Tuesday as investors weighed the U.S. economic growth outlook following a cut to estimates from the OECD. Investors also continued to monitor rising trade tensions with China as well as the European Union. Furthermore, oil prices rose in early Asia trade on Tuesday on concerns about supply, with Iran set to reject a U.S. nuclear deal proposal that would be key to easing sanctions on the major oil producer, and with production in Canada hit by wildfires.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.21% from its previous close of 6.20% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.83% from its previous close of 6.82% on Tuesday.
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