Bond yields edged lower on Tuesday, as CRISIL, domestic rating agency, has nearly halved its Gross Domestic Product (GDP) forecast for India to 1.8 percent for FY21 while projecting total losses of Rs 10 lakh crore or Rs 7,000 per person due to disastrous lockdowns to control COVID-19 pandemic.
In the global market, U.S. Treasury yields rose on Monday despite strong auctions of two- and five-year notes as investors braced for massive looming supply to finance the stimulus measures aimed at combating the economic fallout of the coronavirus outbreak. Furthermore, oil prices slumped, extending the previous session's slide, on worries about limited capacity to store crude worldwide and expectations that fuel demand may only recover slowly as coronavirus pandemic restrictions are gradually eased.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.13% from its previous close of 6.15% on Monday.
The benchmark five-year interest rates were trading 3 basis points lower at 5.18% from its previous close of 5.21% on Monday.