Bond yields traded lower on Tuesday even after Union Minister of State for Commerce and Industry and Electronics and Information Technology, Jitin Prasada has said that recent FTAs with regions including the European Union, the United Kingdom, Australia, New Zealand and other major markets give Micro, Small and Medium Enterprises (MSMEs) access to major developed markets.

In the global market, The 10-year Treasury yield initially moved higher before pulling back on Monday as oil prices at first moved past $100 a barrel, then later declined after President Donald Trump told a CBS News reporter that the Iran war could soon be over. Furthermore, oil prices fell Monday in extended trading after President Donald Trump said he was considering seizing control of the Strait of Hormuz, the most important chokepoint in world for the crude market.

Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 6.67% from its previous close of 6.72% on Monday.  

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