Bond yields traded lower on Wednesday after the Reserve Bank of India (RBI) said that government will repurchase the 1.44 per cent inflation-indexed bonds (IIBs) maturing in 2023 through a reverse auction on February 11.
In the global market, U.S. Treasury prices edged higher during choppy trading on Tuesday as investors concerned about slowing global growth largely shunned equities, opting instead to add to safe-haven U.S. government debt. Furthermore, Crude oil prices pushed higher on Wednesday after Iran said it was open to cooperation with Saudi Arabia, partly recovering from an 8 percent fall in the previous session led by concerns over demand and weak equities.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.71% its previous close at 7.74% on Tuesday.
The benchmark five-year interest rates were trading 2 basis point lower at 7.64% from its previous close at 7.66% on Tuesday.
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