Bond yields traded lower on Tuesday, tracking consistent fall in crude oil prices, while the rupee is also expected to appreciate.
In the global market, US Treasury prices gained on Monday as weak stocks boosted demand for the low-risk debt ahead of Wednesday's conclusion of the Federal Reserve's two-day meeting at which the US central bank is widely expected to raise interest rates. Furthermore, Oil prices dropped 1 percent, extending losses from the previous session as reports of a big climb in US inventories and forecasts of record shale output stoked worries about oversupply.
Back home, the yields on new 10 year Government Stock were trading 6 basis points lower at 7.40% from its previous close of 7.46% on Monday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.36% from its previous close of 7.38% on Monday.