Bond yields traded higher on Wednesday with the Reserve Bank stating that it will conduct a USD/INR buy-sell swap auction of $5 billion (about Rs 43,000 crore) on January 31, as part of its over Rs 1.5 lakh crore liquidity injection into the banking system.
In the global market, U.S. Treasury yields rose on Tuesday as investors looked to the Federal’s Reserve’s first meeting of the year where interest rate decisions will be made. Furthermore, oil prices edged higher but remained near a two-week low on Tuesday, as weak economic data from China and rising temperatures elsewhere dampened the demand outlook.
Back home, the yields on new 10 year Government Stock were trading 13 basis points higher at 6.81% from its previous close of 6.68% on Tuesday.
The benchmark five-year interest rates were trading 12 basis points higher at 6.74% from its previous close of 6.62% on Tuesday.