Bond yields edged lower on Tuesday, on sustained demand from corporates and banks ahead of industrial production (IIP) data for February and retail inflation for March tomorrow. However, gains remained capped ahead of a fresh supply of debt this week amid rising tensions in Asia and Middle East will hurt demand for notes.
In the global market, U.S. Treasury yields were near flat late on Monday after an event at the University of Michigan's Ford School of Public Policy where Federal Reserve Chair Janet Yellen spoke broadly about the U.S. economy and monetary policy. Furthermore, Crude oil climbed to a five-week high, with prices underpinned by tensions following a U.S. missile strike on Syria and a shutdown at Libya's largest oilfield.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.85% from its previous close of 6.87% on Monday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.00% from its previous close of 7.02% on Monday.