Bond yields trade lower on Wednesday

Bond yields traded lower on Wednesday as investors got some support with the statement of Standard & Poor's Rating Services that Indian economy is less vulnerable to external shocks as it is mainly driven by household consumption and government spending, and not dependent on hot money which can move out quickly.

In the global market, U.S. Treasury debt prices were slightly higher on Tuesday as the Federal Reserve began its two-day meeting, with investors anticipating the meeting would conclude with a dovish statement by the central bank saying it will not raise rates as many times as it hoped it would this year. Furthermore, Crude oil futures dropped around 2 percent, heading back towards $30 a barrel as profit-taking wiped out a chunk of the gains notched up in the previous session on hopes for output cuts.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.79% from its previous close at 7.80% on Monday.

The benchmark five-year interest rates were trading 1 basis point lower at 7.66% from its previous close at 7.67% on Monday.