Bond yields traded lower on Tuesday, amid flagging risks of disruptive spillovers from geopolitical hostilities, an RBI article said India faces these challenges from a position of strength built on broadened vaccine coverage, financial sector resilience and robust exports.
In the global market, U.S. Treasury yields reached three-year highs on Monday as investors adjusted for the Federal Reserve to aggressively raise rates as it tries to stem soaring inflation that is running at its fastest pace in 40 years. Furthermore, oil prices were little changed, after rising 1% in the previous session, as Libya was forced to halt some exports and as manufacturers in China prepared to reopen factories after a nearly three-week COVID-19 shutdown in Shanghai.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.13% from its previous close of 7.15% on Monday.
The benchmark five-year interest rates were trading 2 basis points lower at 6.57% from its previous close of 6.59% on Monday.