Bond yields traded higher on Tuesday with private report that business resumption activity continued to increase for the sixth straight week after the second wave-induced lockdowns started getting lifted. It noted that the Nomura India Business Resumption Index (NIBRI) rose up to 91.3 for the week ended June 4, from 86.3 the previous week, and is only 8.7 percentage points (pp) below pre-pandemic levels and 3.6 pp below pre-second wave level.
In the global market, oil prices rose slightly after the previous day's rally, supported by expectations of a tighter market as output talks of OPEC+ nations were called off, but concerns that members may start to increase production capped gains.
Back home, the yields on new 10 year Government Stock were trading 10 basis points higher at 6.18% from its previous close of 6.08% on Monday.
The benchmark five-year interest rates were trading 9 basis points higher at 5.84% from its previous close of 5.75% on Monday.