Bond yields traded higher on Tuesday with Joint Secretary in the Department of Commerce Amitabh Kumar’s statement that Indian exports showed a turnaround after December last year and are still going strong, while global trade took a hit during the COVID-19 pandemic.
In the global market, the U.S. Treasury yield curve steepened on Monday following a blow to Democratic spending plans in Washington and on concerns about the continued spread of the Omicron coronavirus variant. Furthermore, oil prices edged higher, though investors remained worried about the rapid spread of the Omicron coronavirus variant globally, prompting countries to consider more restrictions potentially denting fuel demand.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.46% from its previous close of 6.43% on Monday.
The benchmark five-year interest rates were trading 3 basis points higher at 5.82% from its previous close of 5.79% on Monday.