Bond yields edged higher on Wednesday, as investors remained on sidelines ahead of the Reserve Bank of India's sixth bi-monthly monetary policy statement for 2017-18, due later in the day.
In the global market, U.S. Treasury debt prices gained on the day on Tuesday as volatile equity markets led some investors to seek out lower risk bonds, though many investors remained nervous after a week long bond rout sent yields on Monday to four-year highs. Furthermore, oil prices rose amid a share market recovery and supported by a report that U.S. crude inventories fell last week, although analysts warned that soaring U.S. output and a seasonal demand drop could soon weigh on crude.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.59% from its previous close of 7.57% on Tuesday.
The benchmark five-year interest rates were trading 5 basis points higher at 7.47% from its previous close of 7.42% on Tuesday.