Bond yields traded lower on Tuesday amid an article published by the Reserve Bank of India (RBI) in its July bulletin has said that India's real Gross domestic product (GDP) needs to grow at 7.6 per cent annually over the next 25 years to achieve the per capita income level to become a developed economy.
In the global market, U.S. Treasury yields rose on Monday after data showed that New York manufacturing activity held steady in July after gaining last month. Benchmark 10-year note yields rose to 3.824%, from around 3.797% before the data. Furthermore, oil futures fell Monday, with U.S. and global benchmark prices settling at their lowest in a week after data on China’s economic growth fell short of expectations, raising concerns over the outlook for energy demand.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.05% from its previous close of 7.07% on Monday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.01% from its previous close of 7.04% on Monday.