Bond yields edged higher on Wednesday as investors remained cautious with the report that the Consumer Price Index (CPI)-based inflation surged to five-month high in August, mainly due to an increase in foods prices and higher services costs, indicating Goods and Services Tax’s (GST’s) inflationary impact.
In the global market, U.S. long-dated Treasury yields rose for a third straight session as tepid demand for benchmark 10-year notes pressured overall bond prices. Furthermore, oil prices were mixed, but largely held on to gains in the previous session after OPEC said it expected higher demand for its crude next year.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.58% from its previous close of 6.56% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.53% from its previous close of 6.52% on Tuesday.