Bond yields traded lower on Tuesday amid a private report stating that foreign institutional investors have sold around $800 million in local equities in the past four sessions even as the benchmark Nifty 50 index hit a record 20,000 mark for the first time.
In the global market, treasury yields edged higher on Monday as investors await key inflation data this week that could add to a growing view that the Federal Reserve will keep interest rates steady when policymakers meet next week. Furthermore, the benchmark oil price settled largely unchanged on Monday, holding above the $90 a barrel reached last week for the first time in 10 months following fresh Saudi and Russian crude output cuts.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.19% from its previous close of 7.20% on Monday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.23% from its previous close of 7.24% on Monday.