Bond yields traded lower on Wednesday on a hope that slowing inflation and an improvement in the nation’s public finances will lure global funds. Some support also came with Reserve Bank of India Governor Raghuram Rajan’s statement that global financial markets may be in turmoil but Indian investors shouldn't worry too much.
In the global market, U.S. Treasuries prices sagged on Tuesday as China's lowering of interest rates and required bank reserves reduced investor anxiety and sparked selling of U.S. government bonds and other safe-haven assets. Furthermore, Crude oil futures held in a narrow band on Wednesday not far off 6-1/2 year lows after China's central bank moved to support the country's stumbling economy, while concerns about a supply glut capped gains
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.80% from its previous close at 7.81% on Tuesday.
The benchmark five year yields were trading 2 basis points higher at 7.92% from its previous close of 7.94% on Tuesday.