Bond yields traded flat on Wednesday amid the absence of major triggers, even as underlying sentiment remained bearish after the inclusion of the benchmark paper in weekly auction and as Urjit Patel was named the next central bank chief.
In the global market, U.S. Treasury long-dated yield curve flattened to the lowest in one-and-a-half years as investors focused on whether Federal Reserve Chair Janet Yellen will adopt a more hawkish tone in a speech on Friday. Furthermore, Oil prices fell as an unexpected build in U.S. crude stocks weighed on markets, along with concerns that Chinese crude demand could falter as Beijing clamps down on alleged tax evasion in the oil industry.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 7.15% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.05% from its previous close of 7.06% on Tuesday.