Bond yields edged lower on Tuesday as traders got anxious amid private reports that Rakesh Mohan, a part-time member of the Prime Minister's Economic Advisory Council said that after the failure of the Silicon Valley Bank (SVB) it will not be surprising if more financial institutions fail globally, but no direct impact is expected on Indian banks, though a reversal of capital flows and the consequent impact on the exchange rate could affect the economy
In the global market, U.S. Treasury yields were little changed on Monday, as investors continued to assess the outlook for the U.S. economy and digested the latest round of corporate earnings. Furthermore, Oil prices firmed slightly on Tuesday, after falling 2% in the previous session, as stronger economic data from the world's largest crude importer China underpinned demand outlook.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.22% from its previous close of 7.24% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 7.08% on Monday.