Bond yields traded flat on Tuesday, as investors remained cautious ahead of an auction of state government debt later in the day.
In the global market, long-dated U.S. Treasury bond yields dropped to seven-month lows on Monday and the yield curve between five-year notes and 30-year bonds fell to its flattest level since 2007 after weak U.S. economic data raised concerns about tepid growth and falling inflation. Furthermore, Crude oil futures were largely unchanged as the market took a breather following three days of gains with a supply glut keeping a lid on prices.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 6.46% on Friday.
The benchmark five-year interest rates were trading 2 basis points higher at 6.69% from its previous close of 6.67% on Friday.