Bond yields traded lower on Wednesday, as higher crude oil prices sparked inflationary concerns that may lead to a rate hike.
In the global market, the highest short-term US yields in a decade helped the government sell $35 billion in two-year notes on Tuesday, bringing the yield curve down from its steepest levels in three weeks. Furthermore, oil prices rose for a second day after industry group data showed US crude inventories fell more than expected last week, easing worries about oversupply that had dragged on markets in recent sessions.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.80% from its previous close of 7.78% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.95% from its previous close of 7.93% on Tuesday.