Bond yields traded flat on Tuesday amid Reserve Bank of India’s (RBI) article has said that India's overall economic activity remains strong, driven by an upbeat consumer confidence and uptick in bank credit, and expectations that Omicron may turn out to be a flash flood rather than a wave have further brightened the prospects.
In the global market, U.S. Treasury yields rose along the curve in Asia lifting the shorter end to new pandemic highs as traders braced for the possibility of a hawkish surprise from the Federal Reserve. Furthermore, oil prices rose to a more than seven-year high on worries about possible supply disruptions after Yemen's Houthi group attacked the United Arab Emirates, escalating hostilities between the Iran-aligned group and a Saudi Arabian-led coalition.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.63% on Monday.
The benchmark five-year interest rates were trading 3 basis points higher at 6.06% from its previous close of 6.03% on Monday.