Bond yields edged lower on Wednesday on sustained demand from corporates and banks. However, gains were capped as investors turned cautious ahead of the U.S. Federal Reserve’s monetary policy decision, due later in the day.
In the global market, U.S. Treasury prices gained on Tuesday after weak auto sales raised concerns about the strength of consumer spending, and as investors awaited the conclusion of the Federal Reserve’s two-day meeting on Wednesday. Furthermore, Crude oil prices bounced back as a decline in U.S. inventories underpinned the market, although a dip in compliance with OPEC efforts to reduce output and near record supplies capped gains.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.96% from its previous close of 6.99% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.07% from its previous close of 7.08% on Tuesday.