Bond yields traded higher on Tuesday as credit rating agency ICRA projected the year-on-year (YoY) expansion of India’s Gross domestic product (GDP) to rise to 6.4% in Q3 FY2025 from the seven-quarter low of 5.4% in Q2 FY2025, benefitting from enhanced Government spending amid uneven consumption.
In the global market, oil prices strengthened on Monday as an attack on an oil pipeline pumping station in the Caspian Sea slowed flows from Kazakhstan, while investors monitored developments of a possible Moscow-Kiev ceasefire agreement that could ease sanctions and increase global supplies.
Back home, the yields on new 10 year Government Stock were trading 11 basis points higher at 6.80% from its previous close of 6.69% on Monday.
The benchmark five-year interest rates were trading 11 basis points higher at 6.75% from its previous close of 6.64% on Monday.