Bond yields edged lower on Tuesday after United Nations Conference on Trade and Development (UNCTAD) in its latest report has said that India's economic growth is expected to decline to 5.7 per cent this year from 8.2 per cent in 2021, citing higher financing cost and weaker public expenditures. It further said India's GDP will further decelerate to 4.7 per cent growth in 2023.
In the global market, U.S. Treasury yields fell on Monday as markets began a new quarter and investors digested manufacturing PMI data. Furthermore, oil prices shot up on Monday as OPEC+ considered reducing output by more than 1 million barrels per day (bpd) to buttress prices with what would be its biggest cut since the start of the COVID-19 pandemic.
Back home, the yields on new 10 year Government Stock were trading 9 basis points lower at 7.37% from its previous close of 7.46% on Monday.
The benchmark five-year interest rates were trading 9 basis points lower at 7.29% from its previous close of 7.38% on Monday.