Bond yields traded lower on Tuesday despite industry body Ficci stated that India’s economic growth is expected at 6.3 per cent during 2023-24 on the back of good health of the financial sector and uptick in private investment even as downside risks remain.
In the global market, treasury yields edged higher on Monday as investors faced increased U.S. government debt issuance while an expected Israeli ground offensive in Gaza remained imminent, keeping the bond market in a tentative mood. Furthermore, Oil prices rose on Monday as diplomatic efforts to address the crisis in the Middle East intensified, but slipped back later in the day, falling below $90 on reports that that US was nearing a deal to ease sanctions on Venezuela
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.31% from its previous close of 7.33% on Monday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.32% from its previous close of 7.33% on Monday.