Bond yields edged higher on Tuesday, as traders turned jittery on report that India’s trade deficit swelled to a 29-month high in April, as imports led by gold grew sharper than exports. While Imports grew 49% from a year ago to $37.8 billion, buoyed by a 211% rise in gold imports, exports increased 19.7% to $24.6 billion, widening trade deficit to $13.2 billion from $4.8 billion in the year ago period.
In the global market, U.S. Treasury yields drifted higher on Monday as investors evaluated how many times the Federal Reserve was likely to raise rates this year, with no large economic releases due this week to sway opinion. Furthermore, Oil prices rose, extending gains after a joint announcement by top producers Saudi Arabia and Russia to push for an extension of supply cuts until the end of March 2018.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.84% from its previous close of 6.81% on Monday.
The benchmark five-year interest rates were trading flat at its previous close at 6.97% on Monday.