Bond yields traded lower on Tuesday, as investors took some support with the CBDT, in its latest data showing that the net direct tax collection in India grew by 15.7% on year-on-year basis to reach Rs 4.89 lakh crore in the current fiscal till third week of October.
In the global market, longer-dated U.S. Treasury prices edged higher on Monday as falling stocks boosted demand for low risk debt, though gains were limited as investors remained on edge with rising inflation pressures and further potential interest rate hikes by the Federal Reserve. Furthermore, oil prices fell after Saudi Arabia pledged to play a 'responsible role' in energy markets, although sentiment remained nervous in the run-up to U.S. sanctions against Iran's crude exports that start next month.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 7.89% from its previous close of 7.93% on Monday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.89% from its previous close of 7.91% on Monday.