Bond yields were treading water ahead of key inflation data on March 14, 2013. A reading of 6.5% or less is seen cementing rate cut hopes for March 19. However, the yields are expected to edge higher, although mildly, further in the session, as accelerating consumer price inflation and higher-than-expected factory output data have diluted rate cut bets.
On the global front, US Treasury debt prices rose on Tuesday as a recent spike in yields lured investors and as US government debt tracked other safe-haven markets higher in the absence of key domestic data releases. Meanwhile, Brent futures held above $109 a barrel on Wednesday on expectations of steady growth in global oil consumption, with a surprise fall in stockpiles in the world's top oil consumer, the United States, adding to the upside.
Back home, the yields on 10-year 8.79% - 2021 bonds were trading flat at its previous close of 7.89%.
The benchmark five-year interest rate swaps were trading flat at its previous close of 7.58% on Tuesday.
