Bond yields traded lower on Tuesday after retail inflation rose to an eight-month high of 6.07 per cent in February, mainly on account of a rise in food prices. In the global market, U.S. Treasury yields jumped to two-and-a-half year highs on Monday, ahead of what is expected to be the U.S. Federal Reserve's first rate hike in three years on Wednesday to try to tame soaring inflation that shows no signs of slowing. Furthermore, oil prices slid to a two-week low on continued ceasefire talks between Russia and Ukraine and concerns about demand in China after a surge in COVID-19 cases.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.82% from its previous close of 6.85% on Monday.
The benchmark five-year interest rates were trading 3 basis points lower at 6.12% from its previous close of 6.15% on Monday.