Bond yields traded lower on Tuesday despite Finance Ministry released the 12th installment of Rs 6,000 crore to states to meet the GST compensation shortfall, taking the total amount released so far under this window to Rs 72,000 crore.
In the global market Benchmark the dollar hovered around its highest in nearly one month with traders expecting U.S. Treasury Secretary nominee Janet Yellen to affirm a more traditional commitment to market-set currency rates when she testifies at Capitol Hill later. Furthermore, Brent crude futures edged up as optimism that government stimulus will buoy global economic growth and oil demand trumped concerns that renewed COVID-19 pandemic lockdowns globally could cool fuel consumption.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 5.93% from its previous close of 5.95% on Monday.
The benchmark five-year interest rates were trading 2 basis points lower at 5.28% from its previous close of 5.30% on Monday.
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