Bond yields edged lower on Wednesday after the monetary policy committee (MPC) in its debut policy review, much on expected lines, reduced the repo rate by 25 basis points to 6.25%.
In the global market, U.S. Treasury prices dropped and yields jumped on Tuesday, to almost two-week highs after a report that the European Central Bank may taper asset purchases spooked investors. Furthermore, oil prices rose after a report that U.S. fuel inventories may have fallen for a fifth straight week, but contracts remained near the $50 marker where many traders currently see fair value for crude.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.82% from its previous close of 6.84% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points lower at 6.66% from its previous close of 6.68% on Tuesday.