Bond yields edged lower on Wednesday, as market sentiments remained positive after New Delhi took steps to ease debt supply in first half of the next financial year.
In the global market, U.S. Treasury yields fell on Tuesday with 10-year yield hitting six-week lows as fund managers purchased bonds to rebalance their portfolios for quarter-end, offsetting sales to make room for the record high $294 billion in government debt this week. Furthermore, oil prices fell, with Brent falling back below $70 per barrel and U.S. West Texas Intermediate crudes dipping below $65, pulled down by a report of increasing U.S. crude inventories that surprised many traders.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.30% from its previous close of 7.33% on Tuesday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.26% from its previous close of 7.29% on Tuesday.