Bond yields traded lower on Wednesday as swap rates are rising in India in a sign that traders expect the central bank to roll back monetary stimulus quicker than expected despite its reassurances.
In the global market, U.S. Treasury yields were mixed on Tuesday in thin volume, with those on the long end of the curve falling for a third straight session, as investors looked to next week's Federal Reserve meeting for clues on the timing of its first interest rate hike since December 2018. Furthermore, oil prices fell after industry data showed crude oil stockpiles rose more than expected and fuel inventories unexpectedly increased last week in the United States, the world's largest oil consumer.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.33% from its previous close of 6.36% on Tuesday.
The benchmark five-year interest rates were trading flat with its previous close of 5.84% on Tuesday.