Bond yields traded lower on Tuesday, as traders took note of a report that Prime Minister Narendra Modi has set the target of breaking into top 50 of the World Bank’s Ease of Doing Business index by December end, the government is mulling changes in customs duty to help importers and exporters.
In the global market, benchmark US Treasury yields fell back below 3 percent on Monday, and yields on two maturities at the front of the curve dove below longer-dated 5-year notes for the first time in more than decade, as risk appetite sparked by a US-China trade agreement faded. Furthermore, Oil prices rose, extending strong gains from the previous day amid expected OPEC-led supply cuts and a mandated reduction in Canadian output.
Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 7.58% from its previous close of 7.63% on Monday.
The benchmark five-year interest rates were trading flat at its previous close at 7.52% on Monday.