Bond yields traded flat on Tuesday as traders await state debt sale, while easing U.S. yields aid sentiment. Meanwhile, some concern came with the Department for Promotion of Industry and Internal Trade (DPIIT) data showed that foreign direct investment (FDI) into India declined by 22 per cent to $46 billion in 2022-23, dragged by lower inflows in computer hardware and software, and automobile industry.
In the global market, U.S. Treasury yields fell on Monday as investors braced themselves for a vote on a debt ceiling deal ahead of the June 5 deadline. Furthermore, Oil prices rose on Tuesday as the expectations the debt ceiling deal in U.S., the world’s biggest oil user, will spur more demand but fears of further interest rate rises and that OPEC+ will leave output quotas unchanged capped gains.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 7.02% on Monday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.96% from its previous close of 6.97% on Monday.
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