Bond yields traded lower on Tuesday, on sustained demand from corporates and banks. However, gains were limited as traders remained cautious ahead of the Reserve Bank of India’s (RBI) decision on the monetary policy and key interest rates.
In the global market, US Treasury bond yields on Monday afternoon were back to where they started the day as investors traded cautiously in the lead up to Tuesday's interest-rate policy decision from the Bank of Japan. Furthermore, Oil prices slipped after a report showed that OPEC production reached a 2018 high in the month of July, although the losses were limited as concerns about supply lingered.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.77% from its previous close of 7.79% on Monday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.90% from its previous close of 7.92% on Monday.
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