Bond yields traded higher on Wednesday with Regional PF Commissioner-I Randhir Kumar of Employees' Provident Fund Organisation (EPFO) stating that the Employment Linked Incentive (ELI) announced in the budget for 2024-25 with an outlay of Rs 1 lakh crore, will promote job creation and provide social security.

In the global market, U.S. Treasury yields were little changed on Tuesday as investors continue to assess the aftermath of President Donald Trump’s tariff letters threatening steep duties on several countries, including key allies. Furthermore, oil prices held near a two-week high on Tuesday as investors assessed the latest developments on U.S. tariffs and a higher than expected increase to OPEC+ output for August.

Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.31% from its previous close of 6.30% on Tuesday. 

The benchmark five-year interest rates were trading 2 basis points higher at 6.08% from its previous close of 6.06% on Tuesday.