Bond yields traded marginally higher on Wednesday as State Bank of India (SBI) Chairman Dinesh Khara said the Reserve Bank of India is likely to maintain status quo in the upcoming monetary policy.
In the global market, U.S. Treasury yields ended the day higher on Tuesday, on news that retail sales grew in June at a slower pace than expected. Furthermore, oil prices climbed more than 1% on Tuesday after China said it will act to support economic growth in the world's biggest oil importer and on expectations the U.S. Federal Reserve will stop raising interest rates soon and a forecast decline in U.S. output.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.06% from its previous close of 7.05% on Tuesday.
The benchmark five-year interest rates were trading flat with its previous close of 7.02% on Tuesday.