Bond yields edged marginally lower on Wednesday, tracking overnight gains in U.S. Treasury prices. However, the gains remained capped ahead of fresh supply of notes later this week.
In the global market, U.S. Treasury yields fell on Tuesday, as investors grew cautious about the latest political drama in Washington around healthcare legislation, with weak economic data adding to the uncertainty about the pace of future interest rate hikes by the Federal Reserve. Furthermore, Oil prices fell after a rise in U.S. crude inventories and ongoing high output from OPEC producers revived concerns of a fuel supply overhang.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.45% from its previous close of 6.46% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.56% from its previous close of 6.55% on Tuesday.