The yield on government securities in the secondary market fell on Tuesday on value buying ahead of the scheduled release of April-June economic growth data on Wednesday.
At 1.40 p.m., the yield on 10-year benchmark 6.54 per cent-2032 bond yield was trading at 7.2046 per cent as compared to 7.2534 per cent closed on the previous trading session.
The GDP data for April-June is scheduled to be released on Wednesday. Indian markets will remain shut on Wednesday on account of Ganesh Chaturthi.
"We expect GDP to grow by 14.0 per cent- 14.5 per cent y-o-y in Q1 FY23 backed by low base and strong domestic demand. A broad based pickup was observed across consumption, services industry and investment," said Ritika Chhabra- Economist and Quant Analyst, Prabhudas Lilladher Pvt Ltd.
The further fall in bond yields has been capped by the rise in crude oil prices in the international market.
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Brent crude oil which was trading at $101.46 by the closing of market hours on Monday is now trading at $104.74.
According to various media reports, oil prices rose more than $3 a barrel due to OPEC+ output cuts and conflict in Libya helped to offset a strong US dollar and a dire outlook for the US growth.
The rise in oil prices impacts India majorly because India is a major importer of crude oil for its consumption.