(Reuters) - Indian government bond yields fell on Tuesday, as traders covered short positions ahead of key economic growth data due on Wednesday.
The benchmark 10-year government bond yield was at 7.2221% as of 0500 GMT after rising three basis points on Monday to end at 7.2534%. The new 10-year 7.26% 2032 bond yield was at 7.2083% after ending at 7.2347% on Monday.
"The benchmark yield is seeing decent support at 7.25% levels, and major action will take place only after the growth data," a trader with a primary dealership said.
India is scheduled to release April-June economic growth data on Wednesday when markets will be closed for a festival.
The economy is forecast to have expanded by an annual 15.2% in the April-June quarter, thanks to a weak base last year and a rebound in consumption as pandemic restrictions eased, a Reuters poll of 51 economists found.
Meanwhile, high global oil prices capped further gains and added to concerns over inflation.
The RBI has been focussing on bringing inflation under control and has raised key policy rate by 140 basis points in May-August, with the next policy decision due on Sep. 30.
The Brent crude contract was off highs after hitting an over one-month high on potential supply cut from the Organization of the Petroleum Exporting Countries and allies. It was last at $104.25 per barrel, and had hit $105.48 on Monday.
India is a major importer of crude oil and domestic inflationary pressures are expected to mount due to higher prices. India's consumer inflation has stayed stubbornly above 6% for seven straight months.