Bond yields edged flat on Tuesday as India expressed serious concerns in a WTO meeting in Abu Dhabi over increase in the use of trade protectionist measures by certain countries in the name of environment protection. The remarks assume significance as the country has earlier flagged issues over the European Union's (EU) decision to impose carbon tax (a kind of import tax) on sectors such as steel and fertiliser; and adoption of deforestation regulation by the 27-nation bloc.
In the global market, U.S. Treasury yields inched higher on Monday as investors awaited key economic data set to be published this week which could provide hints about the outlook for interest rates and the state of the economy. Furthermore, oil prices gained on Monday as European diesel demand, constrained by Russian sanctions and shipping disruptions, pulled prices higher in a market jittery with U.S. refinery output limited by planned overhauls.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 7.06% on Monday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.04% from its previous close of 7.05% on Monday.