Bond yields traded higher on Tuesday after IMF’s statement that India's economy is on the path of gradual recovery, real GDP growth, return to positive territory in fourth quarter of 2020. And that's for the first time actually since the start of the pandemic and it's supported by a pickup in gross, fixed capital formation.
In the global market Longer-dated Treasury yields rose on Monday, steepening the yield curve, on investor optimism about the rollout of coronavirus vaccines in the United States and expectations that President Joe Biden's infrastructure initiative could bolster economic growth and debt issuance. Furthermore, oil prices fell as shipping traffic resumed through the Suez Canal after days on hold and attention switched to an OPEC plus meeting this week where the extension of supply curbs may be on the table amid new coronavirus pandemic lockdowns.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.14% from its previous close of 6.12% on Friday.
The benchmark five-year interest rates were trading 5 basis points higher at 5.67% from its previous close of 5.62% on Friday.