Bond yields traded higher on Wednesday, as Minister of State for Finance Pankaj Chaudhary stated that increased tax collection in the first quarter this fiscal shows that the economy is on the recovery path. Net direct tax collection in the April-June quarter of the current fiscal is over Rs 2.46 lakh crore, as against more than Rs 1.17 lakh crore during the same period of the previous fiscal.
In the global market yields, U.S. Treasury yields tumbled on Tuesday as risk appetite languished amid lingering concerns about high inflation and the fast-spreading Delta coronavirus variant that could thwart global economic growth. Furthermore, oil prices climbed after industry data showed U.S. crude and product inventories fell more sharply than expected last week, reinforcing expectations that demand will outstrip supply growth even amid a surge in COVID-19 cases.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.18% from its previous close of 6.17% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points higher at 5.70% from its previous close of 5.68% on Tuesday.