Bond yields were trading lower on Wednesday after the central bank surprised investors by announcing a second open market purchase of papers this fiscal year. Meanwhile, Niti Aayog vice-chairman Arvind Panagariya said that the economy is expected to grow over 8 per cent this fiscal with the forecast of above-normal monsoon.
In the global market, U.S. Treasury yields rose on Tuesday, with the benchmark 10-year yield hitting its highest levels in almost five weeks as investors made room for government debt supply in Europe and the United States. Furthermore, Crude oil futures rose half a dollar in early Asian trading on Wednesday and remained near 2016 highs on the back of strong investor sentiment and a weak dollar
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.46% from its previous close at 7.47% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.48% from its previous close at 7.49% on Tuesday.
The Reserve Bank of India has announced the auction of 91-days and 364-days Government of India Treasury Bills for notified amount of Rs 9,000 crore and Rs 6,000 crore respectively. The auction will be conducted on April 27, 2016 using 'Multiple Price Auction' method.