Bond yields traded flat on Tuesday, as India’s manufacturing sector activity witnessed a significant loss of growth momentum in May due to the intensification of the COVID-19 crisis and its detrimental impact on demand.
In the global market the dollar languished near multi-month lows versus major peers as traders pondered the prospects for early policy normalization by the Federal Reserve ahead of a key jobs report at the end of the week. Furthermore, oil prices rose ahead of an OPEC+ meeting and on optimism that fuel demand will grow in the months ahead with the summer driving season starting in the United States, the world's top oil consumer.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.02% on Monday.
The benchmark five-year interest rates were trading 2 basis points higher at 5.60% from its previous close of 5.58% on Monday.