Bond yields edged higher on Tuesday, with International Monetary Fund’s report stating that India is now in the middle of a significant economic slowdown, urging the government to take immediate policy actions to tackle the current prolonged downturn.
In the global market, US Treasury yields rose Monday in a holiday-truncated week as traders made room for a sale of short-term government debt in the afternoon. Furthermore, Oil prices edged higher on Tuesday in thin pre-Christmas trading after Russia's energy minister said cooperation with the Petroleum Exporting Countries (OPEC) to support the market would continue and as analysts forecast a second weekly decline in US crude inventories.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.58% from its previous close of 6.56% on Monday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.43% from its previous close of 6.42% on Monday.