Bond yields edged higher on Tuesday with a Reserve Bank of India (RBI) article stating that India’s growth in the April-June quarter is likely to be driven by private consumption, supported by reviving rural demand, and renewed buoyancy in manufacturing.
In the global market, U.S. Treasury yields rose on Monday as investors monitored debt ceiling deal negotiations and assessed what could be next for Federal Reserve interest rate policy after mixed messages from officials. Furthermore, oil prices edged up on Monday on a softer dollar and supply cuts from Canada and OPEC+ producers, while investors waited to see if a pledge by the Group of Seven (G7) nations to strictly enforce price caps on Russian energy would impact exports.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.01% from its previous close of 6.98% on Monday.
The benchmark five-year interest rates were trading 4 basis points higher at 6.91% from its previous close of 6.87% on Monday.