Bond yields traded higher on Tuesday, as Reserve Bank of India (RBI) in its latest data has showed that India Inc's direct overseas investment increased 8.5 per cent year-on-year to $3.34 billion in March 2022. The Indian companies had invested $3.1 billion in their overseas fully-owned subsidiaries (WOSs) and joint-ventures (JVs) in the same month a year ago. In the preceding month (February 2022), the outward foreign direct investment was $940.62 million.
In the global market, the benchmark 10-year U.S. Treasury yield rose on Monday to its highest level in more than three years as investors awaited the latest inflation readings this week for indications on how hawkish the Federal Reserve will need to be in its policy path. Furthermore, oil futures rose early, reversing sharp losses from the prior day, as the market weighed the potential for more sanctions on Russia's energy sector and OPEC warned it would be impossible to increase output enough to offset lost supply.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 7.18% from its previous close of 7.14% on Monday.
The benchmark five-year interest rates were trading 5 basis points higher at 6.58% from its previous close of 6.53% on Monday.