Bond yields trade higher on Wednesday

Bond yields traded higher on Wednesday after standard & Poor’s (S&P) has retained India’s rating at ‘BBB-’ with stable outlook, the lowest investment grade for India, thus dashing the government’s hope for a rating upgrade for at least for two years -  this year and the next.

In the global market, U.S. Treasury bond yields rose for a fourth straight session on Tuesday, getting a lift from unexpectedly strong data showing that home building remains a bright sector in the slowing U.S. economy. Furthermore, Oil prices fell on Wednesday after data from an industry group showed a larger-than-expected build in U.S. crude inventories last week, fanning worries over global oversupply, even as a slightly weaker dollar provided some support.

Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.58% from its previous close at 7.57% on Tuesday.

The benchmark five-year interest rates were trading steady from its previous close at 7.64% on Tuesday.