Bond yields traded higher on Tuesday as Economic Affairs Secretary Ajay Seth stated that second quarter GDP growth at 5.4 per cent is lower than the potential but exuded confidence that the second half to be better. He added several high-frequency indicators in the month of October are pointing towards that.
In the global market, 10-year Treasury traded around flat on Monday as investors parsed the latest manufacturing data. Furthermore, Oil prices were little changed on Monday, as hopes of stronger demand stemming from higher factory activity in China was largely offset by concerns that the U.S. Federal Reserve will not cut interest rates again at its December meeting.
Back home, the yields on new 10 year Government Stock were trading 11 basis points higher at 6.82% from its previous close of 6.71% on Monday.
The benchmark five-year interest rates were trading 11 basis points higher at 6.74% from its previous close of 6.63% on Monday.
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