Bond yields trade lower on Tuesday

Bond yields traded lower on Tuesday as investors are bracing for inflation data for signs a further slowdown in price gains will allow the central bank to add to its interest-rate cuts.

In the global markets, U.S. Treasury yields were flat on Monday as growing hopes of stimulus in China and the potential for intervention in Japan helped support bids for riskier assets like oil and stocks. Furthermore, Oil prices dipped in early Asian trade on Tuesday, but both U.S. and international crude futures held above $40 per barrel ahead of a meeting of major producers to discuss freezing output levels to rein in ballooning oversupply.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.40% from its previous close at 7.41% on Monday.

The benchmark five-year interest rates were trading 1 basis point lower at 7.36% from its previous close at 7.37% on Monday

The Reserve Bank of India has announced the auction of 91-days and 364-days Government of India Treasury Bills for notified amount of Rs 9,000 crore and Rs 6,000 crore respectively. The auction will be conducted on April 12, 2016 using 'Multiple Price Auction' method.