Bond yields traded lower on Tuesday with rating agency Crisil’s latest report stating that higher diesel prices will shave off the overall profitability of transporters despite an improvement in freight rates since last month following the withdrawal of the monsoons, consumption recovery and higher infrastructure activity.
In the global market, traders sent most U.S. Treasury yields higher on Monday after Congress passed a $1 trillion infrastructure bill and demand was soft for three-year notes at auction. Furthermore, oil prices rose for a third session as the passage of a U.S. infrastructure bill, Chinese exports and the global post-pandemic recovery lifted the outlook for fuel demand.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.29% from its previous close of 6.30% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 5.80% on Monday.