Bond yields edged higher on Tuesday with Minister of State for Finance Pankaj Chaudhary’s statement that the government has taken several supply-side measures to tame rising inflation. Chaudhary stated the price situation of major essential commodities is monitored by the government on a regular basis and corrective action is taken from time to time.
In the global market, U.S. bond yields rose on Monday as upbeat economic data last week and a quiet period from the Federal Reserve set the stage for risk taking, but ended below session highs as stocks sold off into the close. Furthermore, Oil prices fell, taking a breather after surging more than $5 a barrel in the previous session as a plunging dollar supported buying interest and on expectations the U.S. Federal Reserve's interest rate hike may be less than thought.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.45% from its previous close of 7.43% on Monday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.22% from its previous close of 7.20% on Monday.