Bond yields edged lower on Wednesday, on sustained demand from corporates and banks. Some support also came with Niti Aayog’s former vice chairman Arvind Panagariya’s statement that India is headed to become the world’s fifth largest economy and it has the potential to achieve 10% growth rate.
In the global market, U.S. Treasury debt yields weakened on Tuesday in quiet trading, moving in tandem with Japanese government bond yields, after the Bank of Japan kept interest rate targets unchanged and its top official quashed speculation of a move away from an easy monetary policy. Furthermore, oil prices fell, weighed down by data that showed an increase in U.S. crude oil and gasoline inventories.
Back home, the yields on new 10 year Government Stock were trading 15 basis points lower at 7.27% from its previous close of 7.42% on Tuesday.
The benchmark five-year interest rates were trading 3 basis points higher at 7.22% from its previous close of 7.19% on Tuesday.