Bond yields edged lower on Tuesday, as Crisil Research pegged the headline consumer price inflation to come at 6.8 per cent in FY23 - marginally higher than the Reserve Bank's 6.7 per cent estimate - because of the pressures on the food front, where the increase in prices has been double that of FY22.
In the global market, U.S. Treasury yields slid on Monday in thin, choppy trading, with the benchmark 10-year yield hitting a four-month low, as manufacturing and construction data pointed to a slowdown that could prompt the Federal Reserve to slow its interest rate increases. Furthermore, oil prices edged lower, extending losses from the previous session, as investors worried about global oil demand following weak manufacturing data in several countries.
Back home, the yields on new 10 year Government Stock were trading 4 basis point lower at 7.20% from its previous close of 7.24% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 6.94% on Monday.