Bond yields edged higher on Tuesday as investors await Bank of Japan (BOJ) rate decision which is largely seen shaping the future for monetary policies across the advanced world. Adding anxiety among market participants, the Government of India announced the auction for sale (re-issue) of its four stocks worth Rs 14000 crore on September 23, 2016.
In the global market, U.S. Treasuries yields slipped on Monday as traders booked profits made on curve-steepening bets ahead of monetary policy meetings this week at the Bank of Japan and the U.S. Federal Reserve. Furthermore, oil prices fell after Venezuela said that global supplies needed to fall by 10 percent in order to bring production down to consumption levels, and technical indicators also pointed to cheaper crude futures.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.06% from its previous close of 7.05% on Monday.
The benchmark five year yields were trading 2 basis points higher at 6.96% from its previous close of 6.94% on Monday.