Bond yields traded higher on Tuesday, as Indian economy is showing strong signs of recovery from the devastation caused by the pandemic, with an upswing being reported in 19 out of the 22 economic indicators as compared to the pre-Covid levels.
In the global market, U.S. Treasury yields rose on Monday, with the benchmark 10-year climbing back above the 1.4% mark after hitting its lowest level since late September on Friday in the wake of the November jobs report. Furthermore, oil prices edged up after a near 5% rebound the day before as concerns about the impact of the Omicron variant on global fuel demand eased while Iran nuclear talks hit roadblocks, delaying the return of Iranian crude supplies.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 6.39% from its previous close of 6.35% on Monday.
The benchmark five-year interest rates were trading 3 basis points higher at 5.74% from its previous close of 5.71% on Monday.