Bond yields traded lower on Tuesday as Ministry of Finance in its latest quarterly report on public debt management has showed that total liabilities (including liabilities under the Public Account) of the Government, was Rs 128,41,996 crore at end-December 2021 as against Rs 125,71,747 crore at end-September 2021. This indicates a quarter-on-quarter increase of 2.15 per cent in Q3 FY22.
In the global market, the U.S. Treasury yield curve, as measured by the gap between five and 30-year yields, briefly inverted on Monday for the first time since early 2006, as a sell-off in the bond market resumed, raising concerns about the risk of recession.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.82% from its previous close of 6.83% on Monday.
The benchmark five-year interest rates were trading 2 basis points lower at 6.09% from its previous close of 6.11% on Monday.