Bonds retreat on speculation of new 10-year bond

Media reports said govt will sell new 10-year benchmark bond this week

Bonds gave up all their gains on Tuesday after Bloomberg News and NewsRise Financial, citing people familiar with the matter, reported the government will likely sell a new 10-year benchmark bond this week as part of its regular weekly debt auction.

A new 10-year bond was expected to be unveiled this month, which had pressured existing bonds as traders made room for a potential new issuance.

The benchmark 10-year bond yield rose 3 basis points to 7.90%, off the day's low of 7.86%, keeping the yield unchanged from Monday's close.