Bond yields traded lower on Tuesday, as the rupee is expected to recover further against the dollar, with lower US Treasury yields also providing support.
In the global market, US Treasury yields fell to six-week lows on Monday as investors waited on minutes from the Federal Reserve's August meeting on Wednesday and a speech by Fed Chairman Jerome Powell on Friday. Furthermore, Oil prices edged up, supported by expectations of supply cuts once U.S. sanctions against Iran bite in November, but capped by worries a Sino-US trade dispute will drag on fuel demand growth.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.82% from its previous close of 7.84% on Monday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.90% from its previous close of 7.91% on Monday.