Bond yields traded lower on Tuesday after credit rating agency ICRA stated that new investment demand in the second half of this fiscal year is likely to be tempered amid increased geopolitical tensions in the Middle East, and a potential slowdown in the momentum of government capital expenditure (capex) and project execution prior to the general elections.
In the global market, U.S. Treasury yields fell Tuesday as investors assessed the outlook for the economy and monetary policy as they awaited economic data and comments from Federal Reserve officials. Furthermore, oil prices eased on Tuesday, giving up most of the gains from the previous day, on concerns over weak demand in China, with investors focusing on trade data due later in the day to gauge demand from the world's second-largest oil consumer.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.26% from its previous close of 7.28% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.30% from its previous close of 7.31% on Tuesday.
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