Bond yields traded lower on Tuesday amid India's manufacturing sector displayed resilience even as activity moderated in July for second straight month owing to moderation in output and new orders. The Manufacturing Purchasing Managers' Index, compiled by S&P Global, dipped to 57.7 last month from June's 57.8. While new orders remained robust, output growth moderated to a three-month low.
In the global market, U.S. Treasury yields were little changed on Monday as investors digested the latest inflation data, which could affect Federal Reserve monetary policy, and considered the outlook for the economy. Furthermore, oil prices rallied to a fresh three-month high on Monday and recorded their steepest monthly gains since January 2022, supported by signs of tightening global supply and rising demand through the rest of this year.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.16% from its previous close of 7.17% on Monday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.14% from its previous close of 7.15% on Monday.
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