Bond yields traded lower on Tuesday as data showed India's industrial production growth slowed to a nine-month low of 1.2 per cent in May 2025 due to poor performance of manufacturing, mining and power sectors. The factory output, measured in terms of the Index of Industrial Production (IIP), had expanded by 6.3 per cent in May 2024. 

In the global market, 10-year Treasury yield moved lower as investors monitored whether the Senate would pass President Donald Trump’s divisive spending bill over the next few hours. Furthermore, oil prices edged down on Monday as investors weighed easing Middle East risks and a possible OPEC+ output increase in August.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.30% from its previous close of 6.31% on Monday. 

The benchmark five-year interest rates were trading 10 basis points higher at 6.10% from its previous close of 6.00% on Monday.