Bond yields traded lower on Wednesday as investors got support with the President Pranab Mukherjee who describing the country as a haven of ‘stability’ in a turbulent global economy, said that the government has simplified procedures for approvals, repealed obsolete laws and put in place a non-adversarial tax regime to attract investments.
In the global market, U.S. Treasury yields fell after Saudi Oil Minister Ali Al-Naimi effectively ruled out production cuts by major crude producers anytime soon, sending oil and stock prices lower. Furthermore, Oil prices slid on Wednesday, extending sharp falls from the previous session after top exporter Saudi Arabia ruled out production cuts and industry data showed a further build in U.S. crude stockpiles.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.81% from its previous close at 7.82% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.93% from its previous close at 7.91% on Tuesday.