Bond yields edged lower on Tuesday with a private report stating that India's retail inflation accelerated to a five month high of 7.30% in September due to surging food prices, staying well above the Reserve Bank of India's (RBI) upper tolerance band for a ninth month.
In the global market, oil prices fall on Monday after five straight sessions of gains, as investors worried that economic storm clouds could foreshadow a global recession and erode fuel demand.
Back home, the yields on new 10 year Government Stock were trading 3 basis point lower at 7.44% from its previous close of 7.47% on Monday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.43% from its previous close of 7.44% on Monday.