Bond yields edged lower on Tuesday amid a private report stating that foreign Portfolio Investors (FPIs) have expressed concerns about market regulator Securities and Exchange Board of India’s (Sebi) plan to introduce instant trade settlement in the equity markets.
In the global market, U.S. Treasury yields declined Monday as investors looked ahead to a week of key economic data and the Federal Reserve’s first interest rate decision of the year. Furthermore, oil prices fell more than a dollar a barrel on Monday as China’s ailing property sector sparked demand worries, causing traders to reassess the supply risk premium from escalating tensions in the Middle East.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.15% from its previous close of 7.17% on Monday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.03% from its previous close of 7.04% on Monday.