Bond yields traded higher on Wednesday as the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) unanimously decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points (bps) to 5.50 per cent, in a bid to tame rising inflation amid continuing West Asia crisis.
In the global market, U.S. Treasury yields were lower on Tuesday as a surge easing to multi-decade highs took a pause. Furthermore, Oil prices hovered just above the flatline on Wednesday, as investors weighed ongoing threats to Gulf crude flows against recent indications that supplies out of the region are improving.
Back home, the yields on new 10-year Government Stock were trading 3 basis points higher at 7.22% from its previous close of 7.19% on Tuesday.
The benchmark five-year interest rates were trading 2 basis points higher at 6.99% from its previous close of 6.97% on Tuesday.
