Bond yields traded lower on Tuesday with Fitch Ratings’ statement that higher fiscal deficits and lack of clarity on consolidation plans in the Budget add risks to its projection of lowering of India's debt-to-gross domestic product (GDP) ratio.
In the global market, the benchmark U.S. 10-year Treasury yield edged lower on Monday, pausing after a jump on Friday on the back of a stronger-than-expected January payrolls report and ahead of this week's inflation data. Furthermore, oil prices eased ahead of the resumption of indirect talks between the United States and Iran which may revive a nuclear deal that could lead to the removal of sanctions on Iranian oil sales, increasing global supplies.
Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 6.82% from its previous close of 6.87% on Friday.
The benchmark five-year interest rates were trading 5 basis points lower at 6.14% from its previous close of 6.19% on Friday.