Bond yields edged lower on Tuesday on rising speculation that the Reserve Bank of India will lower its repo rate by 25 basis points to 6 percent in its next month monetary policy meeting.
In the global market, U.S. Treasury yields fell on Monday from last week's highs on month-end buying and views that a selloff that followed the surprise U.S. presidential election victory of Donald Trump may have gone too far. Furthermore, oil prices dipped on doubts that producer cartel OPEC will be able to hammer out a meaningful output cut during a meeting on Wednesday aimed at reining in a global supply overhang and propping up prices.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.32% from its previous close of 6.33% on Monday.
The benchmark five-year interest rates were trading flat at its previous close at 6.27% on Monday.