Bond yields traded lower on Tuesday after S&P Global cut its growth forecasts for some of Asia's top economies including India, the Philippines and Malaysia, offsetting upgrades to China and South Africa and much of Latin America. The estimates, which feed into S&P's closely-followed sovereign ratings, saw India's growth projection chopped to 9.5% from 11% due to its Covid-19 outbreak.
In the global market U.S. Treasury yields fell on Monday as the market prepared for the release of June employment data later in the week to gauge the strength of the economic recovery from the coronavirus pandemic. Furthermore, oil prices slipped for a second day on worries about slower fuel demand growth as outbreaks of the highly contagious COVID-19 variant Delta sparked new mobility restrictions around the world.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.04% from its previous close of 6.05% on Monday.
The benchmark five-year interest rates were trading 5 basis points lower at 5.67% from its previous close of 5.72% on Monday.