Bond yields trade higher on Wednesday

Bond yields traded higher on Wednesday as investors turned cautious after the International Monetary Fund (IMF) has cut its global growth forecasts to 7.3 per cent for a second time this year. Some cautiousness also crept in after Moody's Investors Service has said that with India facing fourth largest number of terror attacks across the world in 2013, such incidents have a significant and long-lasting negative impact on the economy.

In the global market, U.S. Treasury debt prices rose on Tuesday as renewed worries about a weakening global economy supported safe-haven demand for government debt. Furthermore, Crude oil prices rose in Asia on Wednesday driven by hopes the crude supply glut would ease and expectations the US central bank would hold off from raising interest rates. 

Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.54% from its previous close of 7.52% on Tuesday.

The benchmark five-year interest rates were trading 4 basis points higher at 7.66% from its previous close of 7.62% on Tuesday.