Bond yields traded higher on Tuesday, as traders remain cautious with FICCI’s Economic Outlook Survey showing that India's economy will grow at a median rate of 6% during the Q1FY20. Also, it pegged the annual median GDP growth forecast for 2019-20 at 6.9%, with a minimum and maximum estimate of 6.7% and 7.2%, respectively.
In the global market, US yield curve inverted further on Monday with yields on shorter-dated yields rising more than longer-dated ones, as upcoming supply of shorter-maturity Treasury debt outweighed the easing of trade tensions between China and the United States. Furthermore, Oil prices rose on after US President Donald Trump predicted a trade deal with China after positive comments by Beijing, calming nerves after a round of tit-for-tat tariff hikes had sent markets reeling.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.49% from its previous close of 6.47% on Monday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.31% from its previous close of 6.32% on Monday.