Bond yields traded higher on Wednesday as retail inflation eased to a nearly six-year low of 3.16 per cent in April, creating enough room for the Reserve Bank to go for another round of rate cut in the June monetary policy review.
In the global market, the benchmark U.S. Treasury yield was higher on Tuesday even after data showed slightly cooler than expected inflation for April. Furthermore, Oil prices dipped in Asian trading on Wednesday, pausing a four-day rally fueled by a U.S.-China tariff truce and soft inflation data, as investors weighed an unexpected rise in crude inventories from an industry report.
Back home, the yields on new 10 year Government Stock were trading 7 basis points higher at 6.35% from its previous close of 6.28% on Tuesday.
The benchmark five-year interest rates were trading 6 basis points higher at 6.08% from its previous close of 6.02% on Tuesday.
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