Bond yields traded higher on Tuesday, as retail inflation rate quickened at a faster-than-expected pace in September and stayed above the central bank’s tolerance ceiling.
In the global market, the dollar flirted with three-week lows as investors stuck to hopes that there will be large U.S. fiscal stimulus after the Nov. 3 election to shore up a pandemic-hit economy, supporting riskier currencies. Furthermore, oil prices were steady in early trade, sitting on losses of nearly 3% from the previous session after supplies began to resume in Norway and the U.S. Gulf of Mexico and Libya resumed production at its largest oilfield.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 5.90% from its previous close of 5.89% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 5.16% on Monday.