Bond yields traded higher on Tuesday ahead of a fresh supply of state debt and after a muted response at an auction yesterday to allocate unutilized limits for foreign investment in government notes.
In the global market, US Treasury yields climbed on Monday to four-week highs following a weak $26 billion two-year note sale, part of $88 billion of coupon-bearing government debt being auctioned this week. Furthermore, Oil prices edged away from three-month lows, supported by a weaker dollar, but concerns of ongoing oversupply weighed on markets and many traders are raising their bets on further price falls.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.25% its previous close at 7.24% on Monday.
The benchmark five-year interest rates were trading 1 basis points higher at 7.11% from its previous close at 7.10% on Monday.