Bond yields traded lower on Tuesday despite private report stated that economic growth to be in the range of 14 per cent to 23 per cent for the first quarter of the current financial year. The growth was projected on a low base of 24.4 per cent contraction in the gross domestic product in Q4 of the previous financial year.
In the global market, U.S. Treasury yields fell on Monday as the market looked ahead to the release later this week of the August employment report and the possibility it could factor into the timing of the Federal Reserve's tapering announcement. Furthermore, oil prices fell on concerns that power outages and flooding in Louisiana after Hurricane Ida will cut crude demand from refineries at the same time global producers plan to raise output.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.21% from its previous close of 6.22% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 5.65% on Monday.