Bond yields edged marginally higher on Tuesday, as investors’ maintained cautious approach ahead of key macro economic data - index of industrial production (IIP) and consumer price index-based inflation due tomorrow.
In the global market, U.S. Treasury yields slipped on Monday, in line with weak European markets, as sharp gains following Friday's strong U.S. non-farm payrolls report prompted investors to consolidate positions. Furthermore, oil prices edged up, lifted in part by a strong demand outlook for the coming weeks, but overall market conditions remain weak on the back of ample supplies and a more subdued outlook for long-term demand.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.48% from its previous close of 6.47% on Monday.
The benchmark five-year interest rates were trading 3 basis points lower at 6.58% from its previous close of 6.61% on Monday.