Bond yields edged higher on Tuesday amid private survey report indicating that Indian consumers are concerned about rising costs but 71 per cent of them believe the economy will recover within a year.
In the global market, benchmark 10-year U.S. Treasury yields jumped to their highest level since 2011 on Monday as investors adjusted for the prospect that the Federal Reserve will hike rates higher and for longer than previously expected as inflation remains near multi-decade highs. Furthermore, oil prices were little changed after rising in the previous session, on concerns that interest rate hikes in the United States to tame inflation will curb economic growth and fuel demand in the world's biggest crude consumer.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.28% from its previous close of 7.27% 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.