Bond yields edged lower on Wednesday, as optimism came with Finance Minister Nirmala Sitharaman’s statement that the government is eager to modify rules and boost investment in the infrastructure space. She also said the government is focusing on real estate as part of a broader plan to kick-start economic growth.
In the global market, Benchmark US Treasury yields rose to six week highs on Tuesday on optimism that the United States and China will reach a deal to de-escalate their trade war, and after data showed strength in the US services sector. Furthermore, Oil prices dropped after industry data showed a larger-than-expected build-up in US crude stockpiles, but expectations for an easing of trade tensions between the United State and China capped losses.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.50% from its previous close of 6.51% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.32% from its previous close of 6.33% on Tuesday.