Bond yields edged lower on Wednesday after private survey showed India's manufacturing industry started the year on a weaker note, expanding at the slowest pace in three months in January as output and sales growth slackened. The Manufacturing Purchasing Managers' Index, compiled by S&P Global, fell to 55.4 last month from 57.8 in December. Still, it remained well above the 50-mark separating growth from contraction for a 19th straight month.
In the global market, U.S. Treasury yields fell on Tuesday as Federal Reserve’s latest meeting kicked off and investors fretted over its policy outcome. Furthermore, Oil prices closed steady on Tuesday after recovering from a near three-week low, drawing support from a weakening dollar and on data showing that demand for U.S. crude and petroleum products rose in November.
Back home, the yields on new 10 year Government Stock were trading 6 basis points lower at 7.28% from its previous close of 7.34% on Tuesday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.18% from its previous close of 7.21% on Tuesday.
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