Bond yields traded higher on Wednesday as investors turned cautious after Reserve Bank of India Governor Raghuram Rajan's statement that implementation remains the major challenge for India's economy and if it can deliver on its promises the country will be 'the place to be'.
In the global market, U.S. Treasury debt prices fell on Tuesday with 30-year yields hovering at their lowest levels in 2-1/2 months as Wall Street stocks eked out gains, erasing losses tied to concerns about slowing Chinese economic growth and falling oil prices. Furthermore, Crude futures slumped again in early Asian trade on Wednesday, with U.S. oil falling to its lowest since September 2003 below $28 a barrel on worries over a global supply glut.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.79% from its previous close at 7.78% on Tuesday.
The benchmark five-year interest rates were trading flat from its previous close at 7.68% on Tuesday.