Bond yields traded higher on Tuesday after ICRA projected that India's GDP will record a double-digit expansion of 10.1 percent in the upcoming fiscal year. It also expects the monetary policy to be changed to neutral from accommodative in the August 2021 Policy review or later.
In the global market Benchmark Treasury yields rose to 10-month highs on Monday as investors adjusted for higher government spending under the Joe Biden administration and before the Treasury will sell new long-dated supply. Furthermore, oil prices slipped as investors remained concerned about climbing coronavirus cases globally, though an anticipated drawdown in crude oil inventory in the United States for a fifth straight week stemmed losses.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 5.93% from its previous close of 5.92% on Monday.
The benchmark five-year interest rates were trading 4 basis points higher at 5.24% from its previous close of 5.20% on Monday.