Bond yields edged lower on Wednesday as traders waited for fresh triggers in the run-up to the Union budget announcement. Besides, SBI Research in its latest Ecowrap report has said that the upcoming Indian budget for 2023-24 will be a challenging one for the government to follow the roadmap for fiscal consolidation amidst a global environment of declining inflation.
In the global market, U.S. Treasury yields rose Tuesday as traders looked to remarks from Federal Reserve speakers that could provide hints about the central bank’s policy plans and awaited key economic data. Furthermore, Oil prices settled higher on Tuesday in choppy trading after China posted weak but expectation-beating annual economic growth data and on hopes that a recent shift in its COVID-19 policy will boost fuel demand.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.31% from its previous close of 7.33% on Tuesday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.15% from its previous close of 7.18% on Tuesday.