Bond yields remained steady as the investors remained cautious ahead of IIP and inflation data to be released later in the day. Depreciation in Indian rupee too weighed down the sentiments. Indian rupee continued to follow a downward trend and was trading 66 paise down against the US dollar to 64.86, its weakest level since September 2013, following appreciation of the dollar overseas after China devalued the yuan for the second straight day.
In the global market, U.S. Treasury yields tumbled to multi month lows on Tuesday as surprise currency devaluation by China touched off safety buying and speculation that Federal Reserve policymakers will delay raising U.S. interest rates. Furthermore, Oil prices extended losses in early trade as Chinese economic worries and oversupply concerns added to the downward pressure.
Back home, the yields on new 10 year Government Stock were trading flat from its previous close at 7.79% on Tuesday.
The benchmark five year yields were trading 1 basis point lower at 7.93% from its previous close of 7.94% on Tuesday.
The Reserve Bank of India has announced the auction of 91-days and 182-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 August 12, 2015 using 'Multiple Price Auction' method.