Bond yields traded flat on Tuesday amid Finance Minister Nirmala Sitharaman in her budget speech announced that standard deduction for salaried employees will be hiked to Rs 75,000, from Rs 50,000 under the new income tax regime in FY25.
In the global market, Longer-dated U.S. Treasury yields ticked higher on Monday as investors awaited key economic data slated for the week and markets considered the latest U.S. political developments. Furthermore, oil prices fell for a second consecutive session on Monday to their lowest level in over a month, as investors looked past U.S. President Joe Biden's decision to end his reelection bid and focused on rising stockpiles and signs of weak demand.
Back home, the yields on new 10 year Government Stock were trading flat with this previous close of 6.96% on Monday.
The benchmark five-year interest rates were trading 11 basis points higher at 7.04% from its previous close of 6.93% on Monday.