Bond yields traded flat on Tuesday, as investors remained cautious after Punjab joined Maharashtra and Uttar Pradesh in announcing sops for farmers. Punjab Chief Minister Amarinder Singh on Monday announced a total waiver of entire crop loans of 8.75 lakh small and marginal farmers.
In the global market, U.S. Treasury yields jumped on Monday after New York Federal Reserve President William Dudley struck a hawkish tone on monetary policy, bolstering expectations that the U.S. central bank will continue to boost interest rates. Furthermore, oil markets held around seven-month lows as investors focused on persistent signs of rising supply that are undermining attempts by OPEC and other producers to support prices.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 6.47% on Monday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.70% from its previous close of 6.71% on Monday.