Bond yields traded flat on Wednesday, as traders took encouragement with a report that the Reserve Bank of India (RBI) has received a good response to its dollar swap window on March 26, establishing the instrument as a credible liquidity tool and paving the way for more such auctions in the coming months.
In the global market, US benchmark 10-year Treasury yields were steady on the day on Tuesday, but above 15-month lows reached on Monday as risk assets showed signs of stabilization after two days of weakness. Furthermore, oil prices edged lower after an industry report showed an unexpected rise in US crude inventories, but losses were capped by ongoing supply curbs and issues affecting output from countries including Venezuela.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close of 7.34% on Tuesday.
The benchmark five-year interest rates were trading flat at its previous close of 7.00% on Tuesday.