Bond yields edged higher on Wednesday, as traders remained on sidelines ahead of the Reserve Bank of India’s monetary policy committee’s (MPC) meeting, which is widely expected to lower interest rates in the wake of cooling inflation.
In the global market, U.S. Treasury yields fell on Tuesday as weak auto sales raised concerns about slow economic growth, before Friday’s highly anticipated employment report for July. Furthermore, Oil fell, with rising U.S. fuel inventories pulling U.S. crude back below $50 per barrel, while ongoing high supplies from producer club OPEC weighed on international prices.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.45% from its previous close of 6.44% on Tuesday.
The benchmark five-year interest rates were trading flat at its previous close at 6.54% on Tuesday.