Bond yields edged lower on Tuesday, as Minister of State for Finance Pankaj Chaudhary said the Central government's total liabilities are seen rising to Rs 155.33 lakh crore in FY23. This would represent an increase of 12 percent over the FY22 figure of Rs 138.88 lakh crore. The Centre is set to borrow a record Rs 14.95 lakh crore on a gross basis from the market through the issuance of bonds in FY23.
In the global market, U.S. Treasury yields edged slightly higher on Monday as investors awaited the Federal Reserve's likely 75 basis point interest rate increase later this week amid growing concerns about an economic slowdown and the potential for recession. Furthermore, Oil rose on expectations Russia's reduction in natural gas supply to Europe could encourage a switch to crude, though concerns over weakening fuel demand because of an expected increase in U.S. interest rates limited gains.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.38% from its previous close of 7.39% on Monday.
The benchmark five-year interest rates were trading 5 basis points higher at 7.17% from its previous close of 7.12% on Monday.