Bond yields traded flat on Wednesday, as investors remained cautious ahead of domestic economic data including December quarter gross domestic product (GDP) and fiscal deficit, to be released later in the day.
In the global market, the margin between U.S. shorter- and longer-dated yields narrowed on Tuesday after Federal Reserve Chairman Jerome Powell said data since December pointed to a strengthening economy and his confidence had increased that inflation will rise. Furthermore, U.S. oil prices extended declines into a second day on Wednesday as the dollar gained and industry data showed an increase in U.S. crude and gasoline stockpiles, with surging production in the country hampering OPEC attempts to end a global glut.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 7.68% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.45% from its previous close of 7.43% on Tuesday.