Bond yields edged lower on Wednesday, on sustained demand from corporates and banks. Some support also came with report that India’s Retail inflation, measured by the consumer price index (CPI), eased to 5.07% in January 2018, after rising to 5.21% in the month of December.
In the global market, U.S. long-dated Treasury yields slipped on Tuesday in quiet, rangebound trading, as investors looked to Wednesday's U.S. inflation report that could shed more light on the pace of future interest rate increases by the Federal Reserve. Furthermore, oil prices were stable, supported by healthy economic growth and expectations that a weaker dollar could spur fuel demand.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.49% from its previous close of 7.50% on Monday.
The benchmark five-year interest rates were trading flat at its previous close at 7.33% on Monday.