Bond yields traded lower on Tuesday after ICRA Ratings expressed concerns over India’s economic growth and has said the economic growth may have slowed to 3.5 per cent in fourth quarter of 2021-22 from 5.4 per cent in the previous three-month period due to the impact of higher commodity prices on margins, decline in wheat yields and on higher base.
In the global market, U.S. Treasury yields rose on Monday as risk sentiment improved ahead of a busy week that will include minutes from the Federal Reserve's latest meeting and new supply of short- and intermediate-dated debt. Furthermore, oil prices eased as concerns over a possible recession and weaker consumption outweighed an expectation of tight global supply and a pick-up in fuel demand in China after Beijing's promises of stimulus.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 7.34% from its previous close of 7.38% on Monday.
The benchmark five-year interest rates were trading 1 basis points lower at 7.14% from its previous close of 7.15% on Monday.