Bond yields traded marginally lower on Monday as traders awaited the Reserve Bank of India’s interest rate decision on Wednesday for cues on the inflation outlook.
In the global market, U.S. Treasury yields followed oil prices lower on Monday as investors monitor signs of de-escalation in the Iran conflict. Furthermore, oil prices rebounded slightly on Tuesday, after plunging in the previous session, on concerns Middle Eastern supply remains at risk as a diplomatic resolution to the U.S.-Iran war that has disrupted shipments still seems unlikely.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.82% from its previous close of 6.83% on Monday.
The benchmark five-year interest rates were trading flat with its previous close of 6.42% on Monday.