Bond yields traded higher on Tuesday as a government report said India expects food inflation to slow in the coming months, backed by a bumper summer crop harvest.
In the global market, U.S. Treasury yields retreated on Monday as investors weighed President-elect Donald Trump’s Treasury secretary pick and eyed a key inflation reading due later in the week. Furthermore, Oil prices fell in early Asian trade on Tuesday, extending losses from the prior session as the prospect of an Israel-Lebanon ceasefire saw traders pricing in a smaller risk premium for crude.
Back home, the yields on new 10 year Government Stock were trading 12 basis points higher at 6.94% from its previous close of 6.82% on Monday.
The benchmark five-year interest rates were trading 12 basis points higher at 6.91% from its previous close of 6.79% on Monday.
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