Bond yields edged flat on Wednesday amid rating agency ICRA’s report that the borrowing cost for states continued to fall for the third week in a row, with the weighted average price falling to 7.44 per cent in the debt auction on Tuesday. The cost had remained at a two-year high throughout January sniffing at 7.8 per cent.
In the global market, U.S. Treasury yields ticked higher on Tuesday after a large drop in durable goods orders and decline in consumer confidence raised some questions about the stability of the economy. The moves were muted as investors awaited a key inflation report later in the week. Furthermore, crude oil futures rose on Tuesday amid uncertainty about the prospects for a cease-fire in the Israel-Hamas war and as some investors expect OPEC+ will extend its production cuts beyond the first quarter.
Back home, the yields on new 10 year Government Stock were trading flat with 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.