Bond yields traded lower on Wednesday despite RBI data showed that interrupting a two-month streak of decline, outward foreign direct investment (FDI) rose sequentially to $1.85 billion in July over $1.07 billion in June, an increase of 73 per cent.
In the global market, U.S. Treasury yields dropped to three-week lows on Tuesday after data showed U.S. job openings in July fell more than expected, providing hope the Federal Reserve may pause future rate hikes the market has priced given the economy's strong performance. Furthermore, oil prices rallied more than a dollar a barrel on Tuesday as the greenback slid, while investors debated the potential impact to energy supply and demand from Hurricane Idalia set to hit Florida this week.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.17% from its previous close of 7.18% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.17% from its previous close of 7.18% on Tuesday.