Bond yields traded lower on Wednesday even after Finance Ministry in its Monthly Economic Review report has said that the Indian economy is well prepared to absorb any upcoming external shock in terms of capital outflow induced by an uncertain geo-political environment, however inflation remains a concern.
In the global market, U.S. Treasury yields rose to their highest levels in two-and-a-half years on Tuesday ahead of an expected Federal Reserve announcement of its first interest rates hike in three years. Furthermore, oil prices rose, bouncing back after earlier falling more than $1 a barrel, as Russia's invasion of Ukraine continues to dominate volatile trading with ceasefire talks the latest market trigger.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.81% from its previous close of 6.82% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.10% from its previous close of 6.11% on Tuesday.