Bond yields traded lower on Tuesday after the Reserve Bank of India (RBI) in its latest data report has showed that India’s outward foreign direct investment (OFDI) commitments declined 8.45% to $2,830.35 million in May 2025, from $3,091.56 million in May 2024. On the sequentially basis, the fall was steeper, from $5,981.86 million in April 2025.

In the global market, U.S. Treasury yields were lower Monday as crude oil prices dropped, lessening the inflationary impact of energy costs on the economy. Furthermore, oil prices slipped on Monday after Iran attacked the U.S. military base in Qatar in retaliation for U.S. attacks on its nuclear facilities, and took no action to disrupt oil and gas tanker traffic through the Strait of Hormuz.

Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.27% from its previous close of 6.30% on Monday. 

The benchmark five-year interest rates were trading 3 basis points lower at 5.99% from its previous close of 6.02% on Monday.