Bond yields traded lower on Tuesday, as foreign portfolio investors (FPIs) sold Rs 7,000 crore worth of equities in the secondary markets in the June quarter.
In the global market, U.S. Treasury yields fell on Monday as weak Chinese economic data and concerns about the Taliban victory in Afghanistan and new COVID variants increased demand for the safe-haven bonds. Furthermore, oil prices rose, recovering from the previous day's losses, as investors sought bargains and on expectations that major producers will not boost supply soon, though fears of weaker global demand amid surging pandemic capped gains.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.23% from its previous close of 6.24% on Monday.
The benchmark five-year interest rates were trading 4 basis points lower at 5.69% from its previous close of 5.73% on Monday.