Bond yields edged higher on Tuesday, on account of lower demand from corporates and banks. However, losses were limited with industry body ASSOCHAM's Year-Ahead Outlook report stating that Indian economy is likely to touch 7% growth in 2018 with the government policies tilting towards the country's stress-ridden rural landscape in the penultimate year before the 2019 general elections.
Furthermore, oil prices were stable on Tuesday, with Brent crude lingering near 2015 highs on the back of an outlook for healthy demand amid ongoing production cuts led by OPEC and Russia.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.30% from its previous close of 7.28% on Friday.
The benchmark five-year interest rates were trading 3 basis points higher at 7.11% from its previous close of 7.08% on Friday.
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