Bond yields edged higher on Wednesday as India’s retail inflation in February eased to a four-month low of 5.09 per cent, remaining within the Reserve Bank's comfort zone of 6 per cent for the sixth month in a row.
In the global market, U.S. Treasury yields were slightly higher Tuesday as investors assessed key inflation data that came in about as expected, adding to expectations the Federal Reserve can wait until later this year to start cutting interest rates. Furthermore, oil prices dipped on Tuesday, settling slightly lower after a higher-than-expected forecast for U.S. crude oil production and bearish economic data, but persistent geopolitical tensions limited declines.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.03% from its previous close of 7.02% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.03% from its previous close of 7.02% on Tuesday.