Bond yields edged lower on Wednesday, as the Reserve Bank of India has allowed foreign investment in government securities with a residual maturity of below three years.
In the global market, U.S. Treasury yields rose on Tuesday, with prices pressured ahead of a quarterly refunding announcement that is expected to show more supply as the government seeks to finance its massive tax cut program and increased fiscal spending plan. Furthermore, Oil prices were stable, supported by concerns that the United States may re-impose sanctions on major exporter Iran, although soaring U.S. supplies capped gains.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 7.73% from its previous close of 7.77% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.77% from its previous close of 7.78% on Tuesday.