Bond yields edged lower on Tuesday, on sustained demand from corporates and banks. Sentiments got some support with Finance Minister Arun Jaitley’s statement that India will continue to grow at 7-8 per cent rate, an 'absolute normal' for the nation under the current global environment. Jaitley also said as far as the economy is concerned, all the decisions taken by the Modi-Government are consistently in one direction.
In the global market, U.S. Treasury debt prices fell on Monday after centrist Emmanuel Macron's victory in the first round of France's presidential race bolstered expectations the country would stay in the European Union and preserve the euro. Furthermore, oil prices inched up but markets remain under pressure following six consecutive sessions of losses as traders lose confidence that pledged output cuts by major producers will rein in oversupply in a world awash with fuel.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.93% from its previous close of 6.94% on Monday.
The benchmark five-year interest rates were trading 4 basis points lower at 6.97% from its previous close of 7.01% on Monday.