Bond yields traded lower on Tuesday, despite global rating agency, Fitch cut India’s GDP growth rate forecast for FY20 by 20 bps to 6.6 per cent, even as it retained FY21 estimate at 7.1 per cent.
In the global market, US Treasury yields fell on Monday in choppy trading, weighed down by softer-than-expected U.S. economic data and persistent pressure from the trade conflict with China, as investors brace for this week's Federal Reserve monetary policy meeting. Furthermore, Oil prices were falling for a second day, after more signs that global economic growth is being hit by US-China trade tensions, although losses were limited amid tensions in the Middle East after tanker attacks last week.
Back home, the yields on new 10 year Government Stock were trading 8 basis points lower at 6.85% from its previous close of 6.93% on Monday.
The benchmark five-year interest rates were trading 3 basis points lower at 6.69% from its previous close of 6.72% on Monday.