Bond yields traded lower on Tuesday after the services sector growth in India fell to a one-year low in November on softer expansions in new work intakes and output, despite receding price pressures. The seasonally adjusted S&P Global India Services Business Activity Index fell from 58.4 in October to a one-year low of 56.9 in November.
In the global market, the 10-year U.S. Treasury yield advanced on Monday as investors digested Friday’s comments from Federal Reserve chief Jerome Powell and fretted over the outlook for interest rates and central bank policy. Furthermore, oil prices fell on Monday on concern about a drop in demand and on continued uncertainty about the depth and duration of OPEC+ supply cuts.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.26% from its previous close of 7.27% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 7.24% on Monday.