Bond yields traded lower on Wednesday after retail inflation remained almost unchanged amid positive underlying sentiment, as investors expects an announcement on the appointment of a new central bank governor. The CPI inflation of the country grew by 5.77 per cent in June, marginally higher from 5.76 per cent in previous month.
In the global market, U.S. Treasury yields rose on Tuesday as expectations of new stimulus in Japan boosted stocks and reduced demand for safe haven bonds, and after the Treasury Department saw the weakest demand for 10-year notes at an auction in seven years. Furthermore, Crude futures fell on Wednesday as investors took gains after oil prices surged nearly 5 percent in the previous session, partly on the back of a forecast increase in demand next year.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.30% from its previous close at 7.33% on Tuesday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.16% from its previous close at 7.19% on Tuesday.
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