Bond yields edged higher on Wednesday, as gains in crude oil prices boost the possibility of local inflation gathering pace.
In the global market, oil prices edged higher, adding to steep gains in the previous session, as markets eyed an escalation of Middle East tensions after Europe's air traffic control agency warned of possible air strikes on Syria in the next 72 hours. Furthermore, U.S. Treasury yields rose on Tuesday, sparked by a rally in stocks after a friendlier tone from Chinese President Xi Jinping helped ease trade tensions and following data showing a pick-up in U.S. inflation at the producer level.
Back home, the yields on new 10 year Government Stock were trading 7 basis points higher at 7.45% from its previous close of 7.38% on Tuesday.
The benchmark five-year interest rates were trading 4 basis points higher at 7.32% from its previous close of 7.28% on Tuesday.