Bond yields edged higher on Tuesday amid Reserve Bank of India said the fiscal health of the subcontinent's states is on the mend, with the consolidated gross fiscal deficit to gross domestic product ratio seen falling to 3.4% from 4.1% for the previous year.
In the global market, oil prices slipped on Monday but were holding near their highest levels this month as easing COVID restrictions in China raised hopes of a demand recovery in the world's top crude importer.
Back home, the yields on new 10 year Government Stock were trading 1 basis points higher at 7.33% from its previous close of 7.32% on Monday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.18% from its previous close of 7.16% on Monday.