Bond yields traded lower on Wednesday, as traders were taking note of a report that the recent increase in petrol and diesel prices is likely to give state governments a windfall gain of around Rs 22,700 crore over and above the budget estimates for current fiscal.
In the global market, US Treasury bond yields rose on Tuesday following a report of a record number of job openings in July as $144 billion in new supply on offer this week weighed on prices. Furthermore, Oil prices rose after a report of falling crude inventories and the looming sanctions against Iran fuelled expectations of a tightening market
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 8.16% from its previous close of 8.18% on Tuesday.
The benchmark five-year interest rates were trading 6 basis points higher at 8.28% from its previous close of 8.22% on Tuesday.