Bond yields traded lower on Wednesday even after Reserve Bank of India’s Monetary Policy Committee kept the benchmark interest rates unchanged to 4 per cent maintained an accommodative stance for the ninth consecutive time.
In the global market, the benchmark U.S. 10-year Treasury yield rose for a second consecutive day on Tuesday as concerns over the newly discovered Omicron COVID-19 variant continued to wane and boosted risk appetite. Furthermore, oil prices edged lower, reversing gains from earlier the week, as investors tried to assess the full impact of the Omicron coronavirus variant on global fuel demand and the effectiveness of existing vaccines.
Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 6.34% from its previous close of 6.39% on Tuesday.
The benchmark five-year interest rates were trading 5 basis points lower at 5.69% from its previous close of 5.74% on Tuesday.