Bond yields traded higher on Tuesday after Care Ratings’ report that the country's gross domestic product (GDP) growth is likely to be 8.8 to 9 per cent in the current financial year, driven by agriculture and industry sectors. The country's economy had contracted by 7.3 per cent in fiscal 2020-21.
In the global market, U.S. Treasury yields drifted higher in choppy trading on Monday, recovering from sharp falls earlier in the session and tracking shifts in risk appetite, with investors cautious ahead of the Federal Reserve's monetary policy meeting this week. Furthermore, oil prices were steady with investors betting tight supply and rising vaccination rates will help offset any impact on demand due to surging COVID-19 cases worldwide.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.17% from its previous close of 6.16% on Monday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.69% from its previous close of 5.68% on Monday.