Bond yields traded lower on Tuesday even after Finance Minister Nirmala Sitharaman has said that the fiscal measures taken by government during 2020-21 have been calibrated to sustain high spending in the economy and assist in its V-shaped recovery, resulting in a positive GDP growth of 0.4 percent in third quarter of FY 2020-21.
In the global market benchmark U.S. Treasury yields advanced on Monday, with the belly of the curve leading the way, as investors continued to price in higher inflation and more upbeat prospects for the U.S. economy as it emerges from the coronavirus pandemic. Furthermore, oil prices rose on expectations of a recovery in the global economy after U.S. Senate approval of a $1.9 trillion stimulus bill and on a likely drawdown in crude oil inventory in the United States.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.20% from its previous close of 6.22% on Monday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.85% from its previous close of 5.84% on Monday.