Bond yields edged higher on Tuesday despite Fitch Ratings has cut India`s growth forecast to a 30-year low of 2 percent, from 5.1 percent projected earlier for the current financial year (FY21), as economic recession gripped global economy following the lockdown due to COVID-19 pandemic.
In the global market, U.S. Treasury yields rose on Monday as stocks rallied on hopes the coronavirus health crisis may be slowing, with hard-hit New York and New Jersey eying possible plateaus. Furthermore, oil rose amid hopes that the world`s biggest producers of crude will agree to curtail production as the coronavirus pandemic ravages the global economy, even as analysts cautioned the cuts may do little to boost demand.
Back home, the yields on new 10 year Government Stock were trading 9 basis points higher at 6.39% from its previous close of 6.30% on Friday.
The benchmark five-year interest rates were trading 10 basis points higher at 5.88% from its previous close of 5.77% on Friday.