Bonds yields traded flat on Wednesday, on expectation of potential increase in the US interest rate. 5-year Indian sovereign yields surged last quarter to their highest in almost 2 years, as the Fed signaled it’s on track to lift borrowing costs this year and the crisis in Greece deepened. Further, most of the corporate-bond supply is to raise money to refinance and pay the banks.
In the global markets, U.S. Treasury yields tumbled on Tuesday, with investors worrying about Greece's debt crisis and possible exit from the euro zone pushing benchmark 10-year yields to five-week lows. Furthermore, Oil futures fell again on Wednesday as worries over the Greek debt crisis and China's stock market turmoil outweighed an expected U.S. inventory drop.
Back home, the yields on 10 year Government Stock was trading flat at its previous close of 7.78% on Tuesday.
The benchmark five year yields was trading flat at its previous close of 7.96% on Tuesday.
The Reserve Bank of India has announced the auction of 91-days and 364-days Government of India Treasury Bills for notified amount of Rs 8,000 crore and Rs 6,000 crore respectively. The auction will be conducted on July 08, 2015 using 'Multiple Price Auction' method.