Bond yields edged higher on Tuesday as India's manufacturing sector continued to show a stellar performance, with the HSBC India PMI climbing to a 16-year high on the back of the strongest increases in output and new orders since October 2020, parallel to the second-sharpest upturn in input inventories in the history of the survey.
In the global market, U.S. Treasury yields rose on Monday as stronger-than-expected manufacturing data raised doubts on whether the Federal Reserve could actually deliver on the three interest rate cuts outlined in its forecast at the last policy meeting. Furthermore, oil prices settled higher Monday as reports that Israel struck an Iranian consulate in Syria stoked fresh geopolitical tensions in the Middle East just days ahead of the OPEC+ gathering later this week.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.08% from its previous close of 7.05% on Thursday.
The benchmark five-year interest rates were trading flat with its previous close of 7.05% on Thursday.