Bond yields edged lower on Tuesday amid foreign fund inflows. Provisional data from the NSE showed that foreign institutional investors (FIIs) bought shares worth Rs 16.03 crore on January 8.
In the global market, U.S. Treasury yields slipped on Monday as investors looked to key economic data slated for this week, including fresh inflation insights that could affect the direction of interest rates. Furthermore, crude oil declined after Saudi Arabia slashed its prices, raising renewed worries that the market is oversupplied at the same time as demand is weakening.
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 flat with its previous close of 7.07% on Monday.