Bond yields traded flat on Tuesday amid India Ratings said with falling trade deficit, India's current account deficit is likely to narrow to around $10 billion or 1 per cent of GDP in the April-June quarter of the ongoing fiscal. The country's current account deficit (CAD) stood at $18 billion or 2.1 per cent in the corresponding period of the previous fiscal.
In the global market, U.S. Treasury yields were modestly lower on Monday, pulling back from their highs last week, as investors awaited key U.S. economic data, led by the non-farm payrolls report for August on Friday that should help determine the path of interest rates this year. Furthermore, oil prices held steady on Monday, pressured by worries further U.S. interest rate hikes could dent demand but supported by the potential of a supply disruption from a tropical storm off the U.S. Gulf Coast.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 7.17% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 7.17% on Monday.