Bond yields traded higher on Tuesday, as India’s merchandise exports rose by 43% in October 2021 as compared to same period of last year. Export sectors which recorded positive growth during October include petroleum, coffee, engineering goods, cotton yarn/fabs./made-ups, gems and jewellery, chemicals plastic and linoleum and marine products. Trade deficit, gap between imports and exports, widened to $19.73 billion in October as against $9.15 billion in the same month last year.
In the global market, benchmark U.S. Treasury yields rose to three-week highs on Monday as companies rushed to sell debt before liquidity likely worsens during the holiday season and ahead of a U.S. government sale of new 20-year bonds on Wednesday. Furthermore, oil prices slipped as a rebound in COVID-19 cases in Europe raised concerns over demand amid expectation that supply will rise, while some in the market still fear the United States may release crude reserves to stop a rally in gasoline prices.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.36% from its previous close of 6.34% on Monday.
The benchmark five-year interest rates were trading 4 basis points higher at 5.83% from its previous close of 5.79% on Monday.