Bond yields were trading higher on Tuesday after Finance Ministry in its Monthly Economic Review has said that Indian economy is likely to grow at 7 per cent in FY23 despite global headwinds while retail inflation would moderate in line with wholesale inflation which fell to a 25-month low in January.
In the global market, U.S. Treasury yields rose Monday as investors became more optimistic on the stability of the banking sector after Swiss bank UBS agreed to buy its rival Credit Suisse. Furthermore, Oil prices rebounded on Monday after diving to their lowest levels in 15 months amid turmoil in the banking sector.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.35% from its previous close of 7.33% on Monday.
The benchmark five-year interest rates were trading 5 basis points higher at 7.25% from its previous close of 7.20% on Monday.