Bond yields traded lower on Tuesday, after the government data showed retail inflation remained above the RBI's comfort level for the second consecutive month despite slipping slightly to 6.26 per cent in June while the factory output recorded a growth of 29.3 per cent in May, mainly on account of the base effect.
In the global market, U.S. Treasury yields edged lower on Monday after the Treasury Department saw solid demand for sales of new three-year and 10-year notes, and before a highly anticipated inflation release on Tuesday. Furthermore, Oil rose, recovering from the previous day's drop, as expectations of further declines in U.S. crude inventories outweighed fears that spreading COVID-19 variants could derail a global economic recovery.
Back home, the yields on new 10 year Government Stock were trading 12 basis points lower at 6.10% from its previous close of 6.22% on Monday.
The benchmark five-year interest rates were trading 2 basis points lower at 5.72% from its previous close of 5.74% on Monday.
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