Bond yields traded higher on Tuesday, as the Reserve Bank of India (RBI) remained net buyer of the US dollar in December after it purchased $3.991 billion from the spot market. During the reporting month, the central bank bought $10.014 billion and sold $6.023 billion in the spot market.
In the global market benchmark U.S. Treasury yields eased for a second straight session on Monday from a one-year high hit last week as Federal Reserve officials continued to downplay runaway inflation concerns, but a round of solid economic data curbed the decline. Furthermore, oil prices fell more than 1%, extending losses that began last week, as investors unwound long positions on concern that OPEC may agree to increase global supply in a meeting this week and Chinese demand may be slipping.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.23% from its previous close of 6.20% on Monday.
The benchmark five-year interest rates were trading 2 basis points higher at 5.78% from its previous close of 5.76% on Monday.