Bond yields edged lower on Wednesday despite Retail inflation for farm workers and rural labourers easing marginally to 7.52 per cent and 7.37 per cent in January as compared to the previous month, mainly due to lower prices of certain food items. In December 2023, Consumer Price Index-Agricultural Labourers (CPI-AL) and Consumer Price Index-Rural Labourers (CPI-RL) was 7.71 per cent and 7.46 per cent, respectively.
In the global market, U.S. Treasury yields turned mostly lower Tuesday as uncertainty about the outlook for the economy and interest rates lingered. Furthermore, oil prices settled lower on Tuesday, with worries about global demand offsetting price support from the Israel-Hamas conflict.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.04% from its previous close of 7.06% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.04% from its previous close of 7.05% on Tuesday.