Bond yields edged lower on Tuesday despite a private report stating that India's retail inflation is likely to remain steady in December, staying within the Reserve Bank of India's comfort zone for a second month as a moderation in food price rises was partly offset by elevated core inflation. It said retail inflation is likely remained steady at 5.9% in December.
In the global market, U.S. Treasury yields fell Monday as investors made further attempts to predict what 2023 would hold for markets. Furthermore, oil prices rose on Monday after China's reopened borders boosted the outlook for fuel demand and overshadowed global recession concerns.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.31% from its previous close of 7.34% on Monday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.18% from its previous close of 7.21% on Monday.