Bond yields traded higher on Tuesday, despite India's retail inflation hit an 18-month low, rising 2.19% in December as compared with 2.3% in November due to cheaper fuel and food items.
In the global market, US Treasury yields advanced on Monday in thin trading as risk sentiment improved and Wall Street shares trimmed losses, with the overall bond market in consolidation mode after volatile moves in the last two weeks. Furthermore, Oil prices rose by 1 percent amid supply cuts by producer club OPEC and Russia, although analysts said much bigger gains were unlikely because of a darkening economic outlook capped gains.
Back home, the yields on new 10 year Government Stock were trading 6 basis points higher at 7.47% from its previous close of 7.43% on Monday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.28% from its previous close of 7.26% on Monday.