Bond yields traded higher on Wednesday as Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) unanimously voted to reduce the policy repo rate by 25 basis points to 6.00 per cent with immediate effect, for the second time in a row.
In the global market, U.S. Treasury yields climbed again Tuesday after a weak Treasury auction. Traders also weighed the effect of President Donald Trump's revamped tariff policy on the outlook for economic growth and inflation. Furthermore, oil prices steadied on Tuesday but remained near four-year lows as a recovery in equity markets was outweighed by recession fears exacerbated by trade conflict between the United States and China, the world's two biggest economies.
Back home, the yields on new 10 year Government Stock were trading 07 basis points higher at 6.54% from its previous close of 6.47% on Tuesday.
The benchmark five-year interest rates were trading 03 basis point higher at 6.35% from its previous close of 6.32% on Tuesday.
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