Bond yields trade lower on Wednesday

Bond yields edged marginally lower on Wednesday as investors may add positions amid hopes the new 10-year paper to be auctioned by the central bank this week may be priced below a 7 pct coupon.

In the global market, U.S. Treasury prices were little moved on Tuesday with investors holding their positions after comments from Federal Reserve Vice Chair Stanley Fischer that put a spotlight on Friday's non-farm payrolls report. Furthermore, Crude oil futures fell as the U.S. dollar held around three-week highs and industry stocks data indicated a build in U.S. crude inventories.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.10% from its previous close of 7.11% on Tuesday.

The benchmark five-year interest rates were trading 1 basis point lower at 7.01% from its previous close of 7.02% on Tuesday.