Bond yields traded flat on Wednesday as investors stayed cautious ahead of the 2-day RBI policy meet, which begins today. The central bank is unlikely to raise rates at this policy meet. RBI Governor Urjit Patel in his last policy review on February 8 had kept the key interest rate on hold at 6.25%.
In the global market, U.S. Treasury yields touched their lowest in more than five weeks on Tuesday before reversing course to trade little changed on doubts about the ability of U.S. President Donald Trump to enact fiscal stimulus. Furthermore, Oil prices climbed on signs of gradual tightening in a market bloated by years of overproduction that has left storage tanks around the world brimming with unsold fuel.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close of 6.65% on Tuesday.
The benchmark five-year interest rates were also trading flat at its previous close of 6.83% on Tuesday.