Bond yields traded higher on Tuesday as bank credit grew by 5.33 per cent to Rs 108.89 lakh crore, and deposits rose 10.94 per cent to Rs 152.15 lakh crore in the fortnight ended April 9, 2021. In the fortnight ended April 10, 2020, bank advances stood at Rs 103.38 lakh crore and deposits were Rs 137.15 lakh crore.
In the global market U.S. intermediate-dated Treasury yields rose on Monday after the Treasury Department sold $121 billion in short- and intermediate-dated debt to mixed demand, and ahead of this week’s Federal Reserve meeting. Furthermore, oil prices bounced back from drops in the previous session, but gains were seen likely capped by growing concern about fuel demand in India, the world's third-biggest crude importer now slammed by spiralling new coronavirus cases.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.05% from its previous close of 6.03% on Monday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.42% from its previous close of 5.41% on Monday.