Bond yields traded lower on Wednesday as investors welcomed the latest signal from the Federal Reserve that it will move slowly to raise interest rates. Meanwhile, Finance Minister has said that he will reach out to the Congress again to persuade it to support the much delayed GST bill in second half of the Budget Session beginning next month.
In the global market, U.S. Treasury market rallied on Tuesday, with benchmark yields hitting four-week lows, as Federal Reserve Chair Janet Yellen repeated her earlier stand that the U.S. central bank would raise interest rates only gradually due to global risks. Furthermore, Oil futures rebounded in Asian trade on Wednesday, buoyed by a forecast for a less than expected build in crude oil stockpiles last week.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.49% from its previous close at 7.51% on Tuesday.
The benchmark five-year interest rates were trading 5 basis points lower at 7.58% from its previous close at 7.63% on Tuesday.