Bond yields edged lower on Wednesday on sustained demand from corporates and banks. Investors took cautious approach after inflation accelerated in February.
In the global market, U.S. long-dated and benchmark Treasury yields edged lower on Tuesday after a drop in oil prices was viewed as a deflationary sign, but the drop in yields was limited as investors awaited the Federal Reserve's policy statement on Wednesday. Furthermore, U.S. oil prices rose more than 2 percent in early Asian trade, recovering from a three-month low after industry data showed a surprise drawdown in U.S. crude stockpiles and Goldman Sachs put a positive spin on OPEC's compliance with output cuts.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 6.87% from its previous close of 6.91% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.13% from its previous close of 7.12% on Tuesday.