Bond yields traded higher on Tuesday, as some support came with Ajay Seth, secretary at the department of economic affairs, stating that India's inflation should ease in the coming months following steps taken by the Union government and as global prices coming off in May will have a salutary impact.
In the global market, U.S. treasuries slumped on return from Monday's U.S. holiday, sending the yield of the 10-year bond up. Furthermore, oil prices rose after EU agreed to slash oil imports from Russia by the end of 2022, fuelling worries of a tighter market already strained for supply amid rising demand ahead of peak U.S. and European summer driving season.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.43% from its previous close of 7.40% on Monday.
The benchmark five-year interest rates were trading 5 basis points lower at 7.22% from its previous close of 7.17% on Monday.