Bond yields trade lower on Wednesday, on sustained demand from corporates and banks. Some support also came with the report that the wholesale price index based inflation eased to 2.17 per cent in May this year from 3.85 per cent in April.
In the global market, Short-dated U.S. Treasury yields briefly hit multi-week highs on Tuesday after new data showed rising U.S. services prices, but the market was barely changed after a strong 30-year debt auction ahead of Wednesday's Federal Reserve decision on interest rates. Furthermore, oil prices fell by one percent after data showed a build in U.S. crude stocks and OPEC reported a rise in its production despite its pledge to cut back.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.48% from its previous close of 6.49% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.68% from its previous close of 6.69% on Tuesday.