Bond yields traded flat on Tuesday, as Icra projected the economy to grow by 1.9 per cent in the fourth quarter against 5.8 a year ago and 4.3 per cent in 2019-20 against 6.1 per cent in 2018-19.
In the global market, Longer-dated U.S. Treasury yields fell on Friday, as risk sentiment turned sour after Beijing proposed imposing a new security law on Hong Kong, exacerbating China's strained relationship with the United States. Furthermore, oil prices rose on clear signs that producers are sticking to commitments to cut crude supply as more cars get back on the road with coronavirus lockdowns easing around the world.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 5.96% on Friday.
The benchmark five-year interest rates were trading 3 basis points lower at 5.40% from its previous close of 5.43% on Friday.