Bond yields edged higher on Tuesday as retail inflation rose to a three-month high in April on elevated fuel and housing prices, further adding to bets of a monetary tightening going ahead.
In the global market, Treasury yields edged up on Monday, extending weekend gains as trade tensions eased a day after President Donald Trump pledged to help Chinese telecommunications company ZTE Corp, which has been penalized for violating U.S. sanctions with Iran. Furthermore, Oil prices held firm as ongoing production cuts by OPEC and looming U.S. sanctions against Iran tightened the market amid strong demand.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 7.87% from its previous close of 7.83% on Monday.
The benchmark five-year interest rates were trading flat at its previous close at 7.88% on Monday.