Bond yields were trading lower on Tuesday as the International Monetary Fund (IMF) said it is expecting some slowdown in the Indian economy next fiscal year and projected the growth to 6.1 percent from 6.8 percent during the current fiscal ending March 31.
In the global market, U.S. Treasury yields climbed Monday as investors awaited the start of the Federal Reserve’s first meeting of the year on Tuesday and considered the outlook for the economy. Furthermore, Oil prices dipped on Monday, extending losses as looming increases to interest rates by major central banks weighed on demand and Russian exports remained strong.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.37% from its previous close of 7.40% on Monday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.24% from its previous close of 7.25% on Monday.