Bond yields traded lower on Wednesday, as the US Treasury yields eased from multi-year highs and as the Reserve Bank of India will hold an open market purchase of bonds on Thursday.
In the global market, US long-dated Treasury yields fell on Tuesday in choppy trading, as investors took a respite from selling bonds that took rates to multi-year highs following recent economic data and on interest rate prospects over the next year and a half. Furthermore, Oil prices edged lower after the IMF lowered its global growth forecasts but prices were supported as Hurricane Michael churned towards Florida, causing the shutdown of nearly 40 percent of U.S. Gulf of Mexico crude output.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 8.05% from its previous close of 8.08% on Tuesday.
The benchmark five-year interest rates were trading flat at its previous close at 8.04% on Tuesday.