Bond yields traded higher on Tuesday, as some concerns came with a private report stating that despite efforts mounted by the government, demand has been ‘muted’ during the festive time, and this leads to a 0.30% cut in FY20 GDP growth forecast to 5.8%.
In the global market, US Treasury yields rose on Monday ahead of this week's Treasury Department debt auctions, and as risk sentiment improved on optimism about a deal to de-escalate the US-China trade war. Furthermore, Oil prices slipped amid doubts over whether OPEC and other countries will continue to restrain output, edging lower after two days of gains on US economic data and hopes for a Washington-Beijing trade deal.
Back home, the yields on new 10 year Government Stock were trading 15 basis points higher at 6.62% from its previous close of 6.47% on Monday.
The benchmark five-year interest rates were trading 8 basis point higher at 6.43% from its previous close of 6.35% on Monday.