Bond yields traded lower on Wednesday, as credit rating agency, Moody's Investors Service in its latest report has slashed India's growth projection to 9.6 per cent for 2021 calendar year, from its earlier estimate of 13.9 per cent, and said faster vaccination progress will be paramount in restricting economic losses to June quarter.
In the global market yields, benchmark 10-year Treasuries yields inched lower on Tuesday as Federal Reserve Chairman Jerome Powell reiterated to Congress that the central bank will not raise interest rates until there are signs of a 'broad and inclusive' recovery in the job market and economy. Furthermore, oil prices rose after industry data showed U.S. crude inventories fell more than expected, reinforcing views of a tightening supply-demand balance with road and air travel picking up in Europe and North America.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.01% from its previous close of 6.02% on Tuesday.
The benchmark five-year interest rates were trading flat with its previous close of 5.65% on Tuesday.