Bond yields edged lower on Tuesday even after Organization for Economic Co-operation and Development (OECD) raised India’s growth outlook for 2024-25 (FY25) to 6.2 per cent from the 6.1 per cent estimated earlier in its November outlook.
In the global market, U.S. Treasury yields rose on Monday, with interest rate sensitive two-year yields reaching four-week highs, after Federal Reserve Chairman Jerome Powell continued to push back against the prospect of near-term rate cuts. Furthermore, oil prices rose Monday after the U.S. launched retaliatory strikes in Iraq and Syria against Iranian forces and their allies over the weekend, raising the risk that the Middle East is heading toward a broader conflict.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.08% from its previous close of 7.09% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 7.01% on Monday.