Bond yields traded higher on Wednesday, as investors turned anxious after Reserve bank of India (RBI) raised repo rates by 25 basis points to 6.5%.
In the global market, US Treasury yields were little changed in afternoon trading on Tuesday amid widespread expectations the Federal Reserve would leave interest rates unchanged when it announces its latest policy decision on Wednesday. Furthermore, oil prices fell after industry data showed US stockpiles of crude unexpectedly rose, starting the new month in negative territory after the largest monthly decline in two years in July.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.79% from its previous close of 7.77% on Tuesday.
The benchmark five-year interest rates were trading 5 basis points higher at 7.95% from its previous close of 7.90% on Tuesday.