Bond yields trade flat on Tuesday

Bond yields traded flat on Tuesday as investors have turned cautious ahead of Reserve Bank of India's (RBI’s) Monetary policy. The latest monetary policy meeting will be the first meet where the interest rate decision will be taken by the panel. Urjit Patel, the RBI governor, will be one among the six-member Monetary Policy Committee (MPC) recently notified by the government.

In the global market, U.S. Treasury yields rose on Monday after data showed that U.S. factories ramped up activity in September, boosting expectations of economic growth before Friday's highly anticipated jobs report. Furthermore, oil prices dipped, weighed down by a rise in Iranian exports that adds to a global supply overhang, although a planned OPEC-led supply cut later this year has lent crude some support.

Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 6.90% on Monday.

The benchmark five-year interest rates were trading 2 basis points higher at 6.79% from its previous close of 6.77% on Monday.