Bond yields edged lower on Tuesday, despite Moody’s report showed that it has cut its FY20 GDP growth forecast for India steeply to 4.5% from 5.8% predicted in October. The agency had predicted India’s growth this fiscal to be 6.2% in August.
In the global market, US Treasury yields rose on Monday as traders took an optimistic view of a preliminary US-China trade deal and drove stocks to new highs. Furthermore, Oil prices trickled a fraction lower, but remained near a three-month high as investors kept the faith with hopes that a fully-fledged US-China trade deal is in the pipeline and set to stoke oil demand in the world's biggest economies.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.77% from its previous close of 6.79% on Monday.
The benchmark five-year interest rates were trading 4 basis points lower at 6.60% from its previous close of 6.64% on Monday.