Bond yields traded higher on Tuesday as India's Gross Domestic Product (GDP) growth surged to 7.8% in April-June quarter (first quarter) of current fiscal year 2026-27 (Q1FY27), from 6.9% in Q1FY26. The Indian economy has sustained growth momentum despite global headwinds.
In the global market, the 10-year Treasury yield rose on Monday as investors monitored developments in the Middle East as well as a gathering of finance leaders from the Group of 20. Furthermore, Oil prices gained on Tuesday as the resumption of fighting between the U.S. and Iran in the Middle East renewed fears of supply disruptions from the world’s key crude-producing region.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.96% from its previous close of 6.94% on Monday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.58% from its previous close of 6.57% on Monday.