Bond yields edged marginally lower on Wednesday, on sustained demand from corporates and banks. Some support came with report that India's services PMI rose to an eight month high in June at 53.1 as against 52.2 in May of 2017. This was also the fifth consecutive month of expansion as business environment for services sector in the country continued to improve.
Furthermore, Oil markets were firm on worries over geopolitical tensions in the Korean peninsula and the Middle East, although prices were capped as supply remains ample despite an OPEC-led drive to rein in production.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.54% from its previous close of 6.55% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.76% from its previous close of 6.77% on Tuesday.