Bond yields edged lower on Tuesday with a private report that India consumer inflation likely snapped a four-month downward trend in May due to rapidly rising food costs, suggesting the Reserve Bank of India is still several months away from cutting interest rates.
In the global market, U.S. Treasury yields were higher on Monday as investors looked ahead to the Federal Reserve’s monetary policy meeting and key inflation data due this week. Furthermore, oil prices rose on Monday, buoyed by hopes of rising fuel demand this summer, though gains were capped by a strengthening of the dollar on receding expectations of imminent cuts to U.S. interest rates.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.01% from its previous close of 7.03% on Monday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.02% from its previous close of 7.03% on Monday.