Bond yields traded higher on Wednesday after India failed to meet its goal at an auction of debt-investment quotas for the first time in three years on Monday, signaling overseas demand is faltering as accelerating inflation reduces odds of more interest-rate cuts.
In the global market, U.S. Treasury yields rose to nearly three-week highs on Tuesday after data showed the nation's consumer prices at their strongest in more than three years, pushing traders to price in a greater chance that the Federal Reserve could raise interest rates. Furthermore, Oil prices were trading near 2016 highs, as supply disruptions and output cuts continued to tighten the market, although traders cautioned that high global crude inventories were still weighing on markets.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.46% from its previous close at 7.45% on Tuesday.
The benchmark five-year interest rates were trading flat from its previous close at 7.42% on Tuesday.