Bond yields traded lower on Tuesday after rating agency Crisil said that India’s gross domestic product (GDP) growth can drop to 8.2 per cent in the current financial year (2021-22) if second wave of coronavirus pandemic peaks by June-end.
In the global market Longer-dated U.S. Treasury yields rose on Monday, reversing course in the session, as investors awaited data later this week on inflation and auctions that will bring a burst of supply to the market. Furthermore, oil prices fell as the prospect of the main U.S. East Coast gasoline pipeline remaining shut for the rest of this week led some U.S. Gulf Coast refiners to cut output, denting their appetite for crude.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.00% from its previous close of 6.01% on Monday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.55% from its previous close of 5.54% on Monday.