Bond yields traded higher on Tuesday, after Commerce and Industry Minister Piyush Goyal has said foreign direct investments into the country is on the rise, jumping to $12.1 billion in May this year. He said ‘India has received the highest ever foreign direct investment (FDI) inflow in 2020-21. It surged by 10 per cent to $81.72 billion and FDI during May 2021 is $12.1 billion, i.e. 203 per cent higher than May 2020.’ He also said the government is working on a mission mode to achieve exports target of $400 billion in 2021-22.
In the global market, U.S. Treasury yields ended marginally lower on Monday in light trading volumes as investors waited on comments from Federal Reserve Chair Jerome Powell on Friday for any new clues on when the U.S. central bank may begin paring bond purchases. Furthermore, oil prices rose after the U.S. drug regulator granted full approval to the Pfizer inc/BioNTech SE COVID-19 vaccine, stoking investor hopes that higher fuel demand will follow a potential step up in U.S. coronavirus vaccination rates.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.25% from its previous close of 6.24% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 5.69% on Monday.