Bond yields traded flat on Wednesday after Global forecasting firm Oxford Economics has said retail inflation spike in May might cause the RBI to revisit its focus on growth risks, adding that a rate hike is still unlikely this year.
In the global market yields, U.S. Treasury yields were steady on Tuesday ahead of the conclusion of the Federal Reserve's two-day meeting on Wednesday, which will be watched for any signals on when the U.S. central bank is likely to begin paring its massive bond purchase program. Furthermore, oil prices rose, with Brent gaining for a fifth consecutive session, as falling stockpiles and a recovery in demand encouraged investors.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.04% on Tuesday.
The benchmark five-year interest rates were trading 3 basis points higher at 5.67% from its previous close of 5.64% on Tuesday.