Bond yields traded lower on Tuesday despite India and Israel have signed a Bilateral Investment Agreement (Agreement). The agreement is expected to boost investments, provide greater certainty and protection for investors, facilitating the growth of trade and mutual investments by ensuring a minimum standard of treatment, and an independent dispute resolution mechanism through arbitration.

In the global market, treasury yields slid on Monday as investors look toward key inflation data due later in the week. Furthermore, oil prices settled higher on Monday, recovering some of last week's losses, after producer group OPEC+ opted for a modest output hike and investors priced in the possibility of more sanctions on Russian crude.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.45% from its previous close of 6.46% on Friday.  

The benchmark five-year interest rates were trading 1 basis points lower at 6.35% from its previous close of 6.36% on Friday.