Bond yields traded higher on Tuesday as commerce and industry minister Piyush Goyal said that the proposed free trade agreement with the European Union, when implemented, will provide greater market access for several domestic sectors such as textiles, leather and sports goods in the EU market.
In the global market, oil prices rose, clawing back more of last week's losses as the focus returned to tight supply of crude and fuel products versus concerns about a recession hitting demand down the track.
Back home, the yields on new 10 year Government Stock were trading 6 basis points higher at 7.48% from its previous close of 7.42% on Monday.
The benchmark five-year interest rates were trading 4 basis point higher at 7.29% from its previous close of 7.25% on Monday.