Bond yields traded flat on Wednesday amid India’s service sector activity expanded in the month of October, with companies indicating that a notable pick-up in new business led to the fastest expansion in output in over a decade. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index stood at 58.4 in October from 55.2 in September. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services -- stood at 58.7 in October from 55.3 in September.
In the global market, U.S. Treasury yields fell and the curve steepened on Tuesday as the market awaited a likely Federal Reserve announcement that it will start tapering its asset purchases, while hoping for clues on seemingly persistent inflation and future interest rate hikes. Furthermore, Oil prices fell as industry data pointed to a big build in crude oil and distillate stocks in the United States, the world's largest oil consumer, and as pressure mounted on OPEC to increase supply.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.36% on Tuesday.
The benchmark five-year interest rates were trading 5 basis points higher at 5.90% from its previous close of 5.85% on Tuesday.