Bond yields traded lower on Tuesday despite retail inflation based on Consumer Price Index (CPI) declined to a 25-month low of 4.25 per cent in May mainly on account of softening prices of food and fuel items.
In the global market, treasury yields finished mixed on Monday as investors awaited a major U.S. inflation update and a Federal Reserve policy decision over the next two days. Furthermore, oil prices fell by around $3 a barrel on Monday after analysts highlighted rising global supplies and concerns about demand growth just ahead of key inflation data and a U.S. Federal Reserve meeting later this week.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.00% from its previous close of 7.01% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 6.94% on Monday.