Bond yields edged higher on Wednesday, as investors stayed on the sidelines ahead of the Reserve Bank of India's monetary policy outcome due later in the day.
In the global market, short-dated U.S. Treasury yields rose to their highest in more than eight years on Tuesday as investors increasingly expected the U.S. Congress to pass tax reform legislation and the Federal Reserve to raise interest rates several times next year. Furthermore, oil prices dipped, as refined product inventories in the United States rose in what the market interpreted as a sign of lackluster demand.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.08% from its previous close of 7.06% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points higher at 6.90% from its previous close of 6.88% on Tuesday.