Bond yields traded higher on Tuesday, as domestic rating agency Crisil Ratings in its latest report has said that the monthly collection ratios of its rated securitised pools has seen improvement due to the gradual easing of COVID-19 related restrictions. The ratios had declined between April and June 2021 following the second wave of the Covid-19 pandemic.
In the global market, U.S. Treasury yields resumed their march higher on Monday, with 10-year yields hitting their highest level in three months on solid economic data and signals the Federal Reserve is shifting toward a more hawkish policy. Furthermore, oil markets rose, reversing earlier losses and extending their rally into a sixth session, amid continued concerns over tight supply at a time when demand is picking up with the easing of COVID-19 pandemic restrictions.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.22% from its previous close of 6.20% on Monday.
The benchmark five-year interest rates were trading 1 basis point lower at 5.67% from its previous close of 5.68% on Monday.