Bond yields traded higher on Tuesday despite India's wholesale price index (WPI) inflation surged to 9.87 per cent in the month of June 2026 from 9.68 per cent in May 2026, as a fresh spike in food, non-food articles and minerals outweighed a moderation in fuel inflation.
In the global market, U.S. Treasury yields rose on Monday as the ceasefire agreement between the U.S. and Iran came under increasing strain, with the two sides trading strikes over the weekend and President Donald Trump reinstituting a blockade of Iranian ships using the Strait of Hormuz. Furthermore, Oil prices extended a sharp rally on Tuesday, as U.S.-Iran hostilities intensified after Washington decided to reinstate a maritime blockade on Iran and impose charges on cargo transiting the Strait of Hormuz.
Back home, the yields on new 10 year Government Stock were trading 08 basis points higher at 6.81% from its previous close of 6.73% on Monday.
The benchmark five-year interest rates were trading 11 basis point higher at 6.51% from its previous close of 6.40% on Monday.