Bond yields traded lower on Tuesday after the Reserve Bank of India (RBI) at its policy meet kept key policy rates unchanged and retains FY17 GDP growth forecast at 7.6%.
In the global market, U.S. Treasury yields were up slightly, with longer-dated maturities edging up to their highest level in more than two weeks on a modest rise in expectations that the Federal Reserve could raise short-term interest rates by year-end. Furthermore, Crude prices inched down, paring gains from a day earlier, as worries over a global oil glut tempered speculation that OPEC would try to restrain output.
Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 7.12% from its previous close at 7.17% on Monday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.05% from its previous close at 7.07% on Monday.