Bond yields edged lower on Wednesday amid Credit rating agency ICRA has revised the banking sector outlook to Stable from Positive on the expectation of moderation in credit growth and profitability metrics, though the same would continue to remain healthy.
In the global market, U.S. Treasury yields fell Tuesday, as investors looked ahead to fresh inflation insights due later this week, which could provide clues about the path ahead for monetary policy. Furthermore, Oil prices settled lower on Tuesday, as talks for a ceasefire in Gaza continued, but losses were limited to less than a dollar a barrel as Egyptian and Qatari mediators met resistance in their search to find a way out of the war.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.12% from its previous close of 7.15% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 7.12% on Monday.