Bond yields edged higher on Wednesday as worries abated over contagion in the U.S. banking sector and in-line inflation data cooled expectations regarding the size of the rate hike at next week's FOMC meeting.
In the global market, the yield on the 2-year Treasury note climbed on Tuesday, rebounding after posting its biggest three-day slide since 1987 as investors flocked to safety in the wake of Silicon Valley Bank’s collapse. Furthermore, oil prices dropped to a three-month low on Tuesday after a U.S. inflation report and the recent U.S. bank failures sparked fears of a fresh financial crisis that could reduce future oil demand.
Back home, the yields on new 10-year Government Stock were trading 2 basis points higher at 7.39% from its previous close of 7.37% on Tuesday.
The benchmark five-year interest rates were trading 15 basis points higher at 7.39% from its previous close of 7.24% on Tuesday.