Bond yields traded higher on Tuesday as economic think tank NCAER said the Indian economy could grow higher than 7 per cent and possibly closer to 7.5 per cent in the current fiscal on the back of normal monsoon and receded electoral uncertainty.
In the global market, US Treasury yields slipped on Monday, with those on benchmark 10-year notes falling to two-week lows, as investors awaited this week’s Federal Reserve policy meeting in which the central bank is expected to signal the start of its rate-cutting cycle in September. Furthermore, oil fell by nearly 2% on Monday after Israeli officials said they wanted to avoid dragging the Middle East into an all-out war while responding to a deadly rocket strike in the Israeli-occupied Golan Heights over the weekend.
Back home, the yields on new 10 year Government Stock were trading 13 basis points higher at 7.04% from its previous close of 6.91% on Monday.
The benchmark five-year interest rates were trading 12 basis points higher at 6.96% from its previous close of 6.84% on Monday.