Bond yields traded higher on Tuesday as Income Tax Department has said that Net direct tax collection grew 8.82 per cent to over Rs 18.38 lakh crore between April 1, 2025 and January 11, 2026 period, as compared with Rs 16.89 lakh crore collected during the same period last year.

In the global market, benchmark 10-year Treasury yield moved higher on Monday as investor worries around the Federal Reserve’s independence spurred volatility in the stock market and following the 10-year auction. Furthermore, oil prices rose on Monday as concerns Iran may reduce exports during a crackdown on the biggest anti-government demonstrations in years offset expectations supplies could rise from ‍Venezuela, another OPEC member under sanctions.

Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.62% from its previous close of 6.60% on Monday. 

The benchmark five-year interest rates were trading 3 basis points higher at 6.39% from its previous close of 6.36% on Monday.