Bond yields traded higher on Tuesday with a labour ministry’s statement that retail inflation for farm and rural workers in June eased to 7.16 per cent and 7 per cent, respectively, as compared to May this year.
In the global market U.S. Treasury yields on the long end of the curve were a touch lower on Monday amid strengthening stocks and ahead of new supply this week. Furthermore, oil prices were little changed, trapped in the narrow trading band of the past three weeks as investors gauged hopes for a recovery in oil demand against fears of new lockdowns due to a growing number of coronavirus cases.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 5.82% from its previous close of 5.79% on Monday.
The benchmark five-year interest rates were trading 3 basis points higher at 4.93% from its previous close of 4.90% on Monday.