Bond yields traded higher on Tuesday as Crisil Ratings in its latest report has said that debt securitisation volumes have inched up to Rs 49,000 crore during April-June 2025 (Q1FY26) as compared to Rs 45,000 crore recorded in the year-ago period. It said the total number of originators in these securitisations, wherein a lender hands over future receivables on a single or a bunch of loans to a new entity usually on a discount, was around 90.

In the global market, U.S. 10-year Treasury yield rose Monday as investors monitored trade tensions amid an extension of the 90-day tariff reprieve deadline and as U.S. President Donald Trump threatened more tariffs. Furthermore, oil prices slipped more than 1% on Monday after OPEC+ surprised markets by hiking output more than expected in August, raising concerns about oversupply.

Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.30% from its previous close of 6.29% on Monday. 

The benchmark five-year interest rates were trading 4 basis points higher at 6.09% from its previous close of 6.05% on Monday.