Bond yields remained steady on Wednesday amidst lack of any fresh triggers. Investors turned cautious with the report that India’s merchandise exports contracted for the 15th month in a row in February amid tepid global demand and a volatile global currency market. Exports fell 5.6% in February from a year earlier to $20.73 billion, the slowest decline since December 2014 when shipments fell 3.77%.
In the global market, U.S. Treasury debt prices gave up most gains to trade narrowly mixed on Tuesday, as investors braced for the possibility the Federal Reserve could strike a more upbeat tone on the economy and consequentially raise interest rates at a faster pace than many initially expected. Furthermore, Oil prices rose on Wednesday after falling in the previous session, with U.S. producers showing increasing signs of financial distress and as focus shifted to U.S. inventory data due later in the day.
Back home, the yields on new 10 year Government Stock were trading flat from its previous close at 7.58% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.76% from its previous close at 7.75% on Tuesday.