Bond yields traded higher on Tuesday despite government data showed that India's eight key infrastructure sectors grew at a slower pace of 1.8 per cent in November against 5.8 per cent in the same month last year, amid a dip in production of crude oil, natural gas, refinery products, and electricity.
In the global market, U.S. Treasury yields ticked up on Monday as investors prepared for the holiday-shortened week which includes a number of major note auctions. Furthermore, oil prices settled higher on Monday after the U.S. Coast Guard tried to intercept an oil tanker in international waters near Venezuela a day earlier, and Ukraine damaged two vessels and piers in Russia, raising the risk of oil supply disruptions.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.67% from its previous close of 6.66% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 6.43% on Monday.