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.
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.