Bond yields edged lower on Tuesday as Crisil Research said that India Inc is staring at the third consecutive quarter of a year-on-year drop in profit margins for the April-June 2022 period. It added that operating profit margins have likely fallen by 2-3 percentage points for the June quarter as compared to the year-ago period.
In the global market, U.S. Treasury yields dropped on Monday in choppy trading, in line with Europe, drawing safe-haven bids amid a sell-off on Wall Street driven by growth concerns that could hurt earnings. Furthermore, oil prices fell as fresh COVID-19 curbs in China, the world's biggest crude importer, and fears of a global economic slowdown weighed on the fuel demand outlook.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.40% from its previous close of 7.42% on Monday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.23% from its previous close of 7.21% on Monday.