Bond yields traded lower on Wednesday, on sustained demand from corporates and banks. Some support also came with a monthly survey indicating that the country's services sector activity in November expanded at the quickest pace since July, driven by new work orders and favourable market conditions, which in turn led to a continued rise in jobs. The seasonally adjusted Nikkei India Services Business Activity Index rose to a four-month high of 53.7 in November, from 52.2 in October.
In the global market, the difference between short-dated and long-dated US Treasury yields narrowed further on Tuesday as the inversion of the yield curve spread between more maturities, prompted by worries about a slowdown in US economic growth. Furthermore, Oil prices fell, weighed down by swelling US inventories and a plunge in global stock markets as China's government warned of increasing economic headwinds.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.55% from its previous close of 7.57% on Tuesday.
The benchmark five-year interest rates were trading 10 basis points lower at 7.46% from its previous close of 7.56% on Tuesday.