Bond yields traded higher on Tuesday as private report stated that India's economy is expected to grow at 7-7.2 per cent in the current fiscal year driven by robust economic fundamentals and continuity in domestic policy reforms.
In the global market, U.S. Treasury yields rebounded from one-year lows on Monday on greater optimism over the U.S. economy and a closely watched part of the yield curve reinverted, after briefly turning positive for the first time in two years. Furthermore, oil futures extended losses in a volatile session on Monday as fears of a recession in top oil consumer the United States offset supply worries stemming from mounting tensions in the Middle East, the world's largest oil producing region.
Back home, the yields on new 10 year Government Stock were trading 12 basis points higher at 6.98% from its previous close of 6.86% on Monday.
The benchmark five-year interest rates were trading 12 basis points higher at 6.90% from its previous close of 6.78% on Monday.
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