Bond yields edged marginally lower on Wednesday, on sustained demand from corporates and banks. However, the gains remained capped ahead of auctions of sovereign notes through the rest of the week.
In the global market, U.S. Treasury yields rose on Tuesday as Federal Reserve Chair Janet Yellen stuck to the view that the central bank remains on track for gradual interest rate increases even as inflation remains below its 2 percent goal. Furthermore, Brent oil prices rose to sit not far off 26-month highs hit in the previous session amid threats from Turkey that it could cut crude exports from Iraq's Kurdistan region.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.66% from its previous close of 6.67% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.68% from its previous close of 6.69% on Tuesday.