Bond yields edged lower on Tuesday ahead of Monetary Policy Committee (MPC) meeting starting today amid expectations of at least 0.25 percent policy rate cut in order to tackle the impact of demonetisation move by the central government.
In the global market, longer-dated U.S. Treasury yields fell in choppy trading on Monday as investors viewed the dramatic bond market sell-off following Donald Trump's surprise U.S. presidential win as overdone. Furthermore, oil prices eased early in Asia as crude output rises in virtually every major export region despite plans by OPEC and Russia to cut production, triggering fears that a fuel glut that has dogged markets for over two years might last well into 2017.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.21% from its previous close of 6.22% on Monday.
The benchmark five-year interest rates were trading flat at its previous close at 6.18% on Monday.
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