Bond yields were trading flat on Tuesday amid Union Finance Minister Nirmala Sitharaman said that India's structural reforms approach has ensured that it remains a globally attractive destination for investment and the country is well-positioned in the global economy, allowing it to grow briskly, possibly faster, in the coming years.
In the global market, treasury yields advanced on Monday, led by the 3-month T-bill rate, as traders priced in a better-than-not chance of the fed-funds rate going a bit above 5% next month and staying there until at least June. Furthermore, Oil prices settled lower on Monday, after rising for three straight weeks, as concern about further interest rate hikes that could curb demand balanced the prospect of a tighter market due to supply cuts from OPEC+ producers.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 7.22% on Monday.
The benchmark five-year interest rates were trading 3 basis points higher at 7.08% from its previous close of 7.05% on Monday.