Bond yields edged lower on Wednesday, as investors bet today's economic data will show that retail inflation cooled further, bolstering the case for an interest rate cut in near future.
In the global market, U.S. Treasury yields slipped in choppy trading on Tuesday after Federal Reserve officials, on the eve of Fed Chair Janet Yellen's congressional testimony on monetary policy, expressed doubts about further interest rate hikes due to low inflation. Furthermore, Oil prices extended gains from the previous day as the U.S. government cut its crude production outlook for next year and as fuel inventories plunged.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.46% from its previous close of 6.49% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.56% from its previous close of 6.57% on Tuesday.