Bond yields traded flat on Wednesday as investors continue to remain on their toes ahead of the Thursday’s Federal Reserve interest rate decision. Investors were also concerned with a US trade official’s comment that though India has made steady progress on several areas of critical reforms but the notion that all problems will be addressed quickly would be 'unrealistic' as it could have a political component.
In the global market, US two-year Treasury yields hit their highest in over four years on Tuesday and long-dated yields hit their highest in nearly two months after a rise in German Bund yields triggered a jump higher in US yields in thin trading volumes. Furthermore, oil prices extended gains in Asia on Wednesday on an unexpected stockpile draw and higher gasoline prices, while international crude markets remained weak on the back of low growth expectations.
Back home, the yields on new 10 year Government Stock were trading flat from its previous close at 7.75% on Tuesday.
The benchmark five year yields too were trading flat from its previous close at 7.89% on Tuesday.