Bond yields traded lower on Tuesday after Finance Minister Nirmala Sitharaman said that GST collection of states and union territories (UTs) increased to Rs 5.18 lakh crore in the full financial year 2018-19, up from Rs 2.91 lakh crore collected in nine months of 2017-18.
In the global market, longer-dated US Treasury yields edged lower on Monday as investors focused on Tuesday’s retail sales figures as the next indicator of the strength of the US economy. Furthermore, Oil prices fell for a second day as more production facilities returned to operation in the US Gulf after Hurricane Barry swept through over the weekend, while Chinese economic data dimmed the outlook for crude demand.
Back home, the yields on new 10 year Government Stock were trading 8 basis points lower at 6.35% from its previous close of 6.43% on Monday.
The benchmark five-year interest rates were trading 3 basis points lower at 6.37% from its previous close of 6.40% on Monday.