Bond yields traded lower on Wednesday as investors were buying safe heaven assets after IMF cut India’s growth forecast to 7.4 per cent for 2016 and 2017, a drop of 0.1 per cent from its previous forecast of 7.5 per cent released in April
In the global market, U.S. Treasury debt prices gained on Tuesday as risk appetite waned following declines in stocks, hurt by the drop in oil prices as well as soft consumer sentiment data in Germany. Furthermore, Oil futures rose on Wednesday after an industry group released weekly figures showing U.S. stockpiles fell more than expected last week.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.26% its previous close at 7.28% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.11% from its previous close at 7.13% 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 July 20, 2016 using 'Multiple Price Auction' method.