Bond yields were trading tad lower tracking a fall in global crude oil prices on expectations of some easing in tensions between Ukraine and Russia. Traders are a bit cautious ahead of inflation and factory data next week, which will be the key factor for near-term direction.
On the global front, U.S. Treasury debt prices extended losses on Tuesday as Russian President Vladimir Putin said his country would use military force in the Ukraine only as a last resort, prompting a reversal in Monday's flight to safe assets. Meanwhile, brent crude held steady above $109 a barrel on Wednesday after pulling back from the previous session's two-month high as fears eased over Russia's incursion into Ukraine territory which could have lead to a war.
The yields on new 10 year Government Stock 2023 were trading 1 basis point lower at 8.83% from its previous close of 8.84% on Tuesday.
The benchmark five-year interest rate swaps were trading 1 basis point lower at 8.52% from its previous close of 8.53% on Tuesday.
The Reserve Bank of India has announced the auction of 91 and 182-days Government of India Treasury Bills for notified amount of Rs 7,000 crore and Rs 6000 crore respectively. The auction will be conducted on February 26, 2014 using 'Multiple Price Auction' method.