Bond yields traded flat on Tuesday, as rating agency CRISIL projected a slower contraction of 7.7% for the Indian economy in the ongoing fiscal, compared to the 9% forecast in September on the back of faster-than-expected recovery in the second quarter, but called for more fiscal measures to sustain it.
In the global market the Treasury yield curve steepened modestly on Monday, ahead of this week's Federal Reserve meeting, and as select hospitals were set to administer the first COVID-19 vaccines. Furthermore, oil prices dipped, with demand worries due to tighter lockdowns in Europe outweighing relief from vaccination rollouts and concerns about a flare-up of tension in the Middle East.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 5.94% on Monday.
The benchmark five-year interest rates were trading 2 basis points lower at 5.10% from its previous close of 5.12% on Monday.