Bond yields traded higher on Tuesday, after govt said it will sell notes under a so-called special auction this week that will add to debt supply. Further, Finance Minister Nirmala Sitharaman said the government is taking steps to carefully monitor the fiscal deficit, which is estimated at 9.5 percent of the GDP for the current financial year.
In the global market Benchmark U.S. Treasury yields held near 11-month highs on Monday as U.S.fiscal stimulus was seen boosting economic growth and spurring inflation, and before the Treasury Department sells new longer-dated debt. Furthermore, oil prices edged up as supply cuts by major producers and optimism overfuel demand recovery support energy markets.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.07% from its previous close of 6.04% on Monday.
The benchmark five-year interest rates were trading 5 basis points higher at 5.62% from its previous close of 5.57% on Monday.
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