Bond yields traded higher on Tuesday amid report that Indian exporters are expecting continuous growth in the country's outbound shipments despite increase in COVID-19 cases as their order books are encouraging and there is a pick-up in demand in rich markets.
In the global market US Treasury yields fell on Monday after data showed manufacturing activity growth slowed in April amid supply chain challenges and rising demand fueled by the COVID-19 vaccine rollout and fiscal stimulus. Furthermore, oil prices added to overnight gains, buoyed as more U.S. states eased lockdowns and the European Union sought to attract more travellers, which would help offset weakened fuel demand in India as COVID-19 cases soar.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.01% from its previous close of 6.00% on Monday.
The benchmark five-year interest rates were trading 3 basis points higher at 5.60% from its previous close of 5.57% on Monday.