Bond yields traded lower on Tuesday, as traders were encouraged with a report that India and China have amended the bilateral tax treaty which will help prevent tax evasion by allowing exchange of information. The Government of India and the People’s Republic of China have signed a protocol on November 26, 2018.
In the global market, US government bond yields rose on Monday, driven by a rally in stock prices, and at the start of a week in which the Treasury Department will issue $129 billion of new notes at auction. Furthermore, Record Saudi oil production pulled down crude prices amid cautious trading ahead of the G20 gathering that starts in Argentina on Friday and next week's OPEC meeting in Austria.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.71% from its previous close of 7.73% on Monday.
The benchmark five-year interest rates were trading flat at its previous close at 7.58% on Monday.