Bond yields edged lower on Wednesday, on sustained demand from corporates and banks. Some support also came with private report that the Indian economy is likely to recover gradually to 7.1 per cent in the 2018-19 financial year, as GST-related disruptions have eased and consumption levels have improved.
In the global market, U.S. Treasury yields were little changed on Tuesday in choppy trading as optimism grew that U.S. President Donald Trump may back down from proposed steel and aluminum tariffs that have prompted concerns about a global trade war. Furthermore, Oil prices fell, pulled down by weaker sharemarkets after a key advocate for free trade in the U.S. government resigned, triggering concerns that Washington would go ahead with import tariffs and risk a trade war.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.76% from its previous close of 7.78% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.49% from its previous close of 7.50% on Tuesday.