Bond yields edged lower on Tuesday, as the Reserve Bank of India's move to allow banks to spread provisions made for mark-to-market losses on their bond portfolios is likely to boost demand.
In the global market, U.S. Treasury yields fell to two month lows on Monday on safety buying as stocks slid, and after a manufacturing report showed an increase in price pressures in March. Furthermore, oil prices inched up as rising Russian output and expectations of a reduction in Saudi Arabian crude prices were offset by a potential slowdown in U.S. production.
Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 7.35% from its previous close of 7.40% on Wednesday.
The benchmark five-year interest rates were trading 6 basis points lower at 7.25% from its previous close of 7.31% on Wednesday.
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