Bond yields traded flat on Tuesday, as the survey conducted by Ficci showed that with states easing lockdown curbs due to declining number of COVID-19 cases, there are immediate indications of improvement in economic activity as companies are hopeful of better performance in the next 6 to 12 months.
In the global market falling inflation expectations briefly pushed yield spreads to their lowest levels in months before rebounding on Monday as investors continued to digest the Federal Reserve's hawkish turn at its policy meeting last week. Furthermore, crude dropped as investors cashed in on a recent rally, but market sentiment remained solid on hopes for a quick recovery in oil demand in the U.S. and European markets and fading expectations for an early return of Iranian crude.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.02% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 5.65% on Monday.