Bond yields edged higher on Wednesday, as investors turned cautious after the six-member monetary policy committee of RBI headed by Governor Urjit Patel bit the bullet and hiked the repo - the short-term lending rate - by 25 basis points to 6.25 percent.
In the global market, U.S. Treasury yields fell on Tuesday as traders piled back into lower-risk government debt after Italy's new prime minister vowed to enact economic policies that could balloon the nation's already-heavy debt load. Furthermore, U.S. oil prices edged up in early Asian trade to move away from lows hit in the previous session, buoyed after industry data showed a decline in U.S. crude inventories.
Back home, the yields on new 10 year Government Stock were trading 6 basis points higher at 7.89% from its previous close of 7.83% on Tuesday.
The benchmark five-year interest rates were trading 8 basis points higher at 7.93% from its previous close of 7.85% on Tuesday.