Bond yields traded higher on Tuesday after Retail inflation, measured by the All India Consumer Price Index (CPI) with the base year 2024, rose to 4.82% (Provisional) in August 2026 from 4.45% (Final) in July 2026, largely driven by higher food prices.
In the global market, US Treasury yields climbed sharply on Monday, as investors increasingly expect the Federal Reserve to raise interest rates this week. Furthermore, Oil prices rose sharply on Tuesday, as more Houthi attacks on Saudi Arabia spurred increased concerns over supply disruptions in the Middle East.
Back home, the yields on new 10-year Government Stock were trading 7 basis points higher at 7.09% from its previous close of 7.02% on Friday.
The benchmark five-year interest rates were trading 15 basis points higher at 6.77% from its previous close of 6.62% on Friday.
