Bond yields edged lower on Wednesday, on sustained demand from corporates and banks. Some support also came with report that government has cut additional borrowing target to Rs 20k crore.
In the global market, U.S. long-dated Treasury yields fell on Tuesday morning along with those of European bonds, after a Reuters report said the European Central Bank was not quite ready to end its bond-buying scheme at next week's meeting. Furthermore, oil prices rose on tightening supply and strong global demand, although some analysts warned of a downward correction after a more than 13-percent price rise in a month.
Back home, the yields on new 10 year Government Stock were trading 13 basis points lower at 7.43% from its previous close of 7.56% on Tuesday.
The benchmark five-year interest rates were trading 9 basis points lower at 7.25% from its previous close of 7.34% on Tuesday.