Bond yields edged marginally lower on Tuesday after the Reserve Bank of India surprised investors by announcing it would auction a new 10-year paper this week.
In the global market, U.S. Treasury prices rose on Monday as foreign investors swooped in and bought Treasuries following a market selloff Friday that took yields on benchmark 10-year notes to their highest since Britain's surprise vote to exit the European Union in late June. Furthermore, oil futures edged up as the U.S. dollar erased earlier gains, but doubts that producers would be able to agree to an output freeze continued to drag on prices.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.11% from its previous close of 7.12% on Monday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.01% from its previous close of 7.04% on Monday.