Bond yields traded higher on Tuesday after data from the Department for Promotion of Industry and Internal Trade (DPIIT) showed that FDI inflow rose 15 per cent during the April-September period to $30 billion (Rs 2.2 trillion) as compared to inflows of $26 billion during the same period last fiscal, with India being an attractive destination for foreign funds despite the pandemic.
In the global market U.S. Treasury curve was slightly steeper on Monday afternoon even though traders were in the process of rebalancing their portfolios for month-end, an event which typically drives longer-dated yields lower. Furthermore, oil prices slipped amid concerns over mounting supply after leading producers delayed talks on 2021 output policy that could extend production cuts as the coronavirus pandemic continues to sap fuel demand.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 5.93% from its previous close of 5.91% on Friday.
The benchmark five-year interest rates were trading 4 basis points higher at 5.11% from its previous close of 5.07% on Friday.