Bond yields edged lower on Wednesday amid ICRA Chief Economist Aditi Nayar has said the wholesale food inflation, which is at a four-month high, will continue to be a cause for concern in May and June as heatwave is likely to jack up prices of perishable commodities.
In the global market, the 10-year U.S. Treasury yield ticked lower on Tuesday as traders weighed a wholesale inflation report that came in above expectations. Furthermore, oil prices settled lower on Tuesday, after U.S. data stoked concerns that interest rates may stay high, but potential risks to supply from Mideast tensions and wildfires in Canada put a floor under prices.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.08% from its previous close of 7.10% on Tuesday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.09% from its previous close of 7.11% on Tuesday.