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Bond yields trade higher on Monday

29 Aug 2016 Evaluate

Bond yields edged higher on Monday after Fed Chair Janet Yellen acknowledged a strengthening economy and said that rates could move higher over coming months.

In the global market, U.S. Treasury yields rose to more than one-month highs on Friday as investors considered whether the Federal Reserve is likely to raise interest rates at its September meeting, after hawkish but noncommittal comments by Fed Chair Janet Yellen. Furthermore, Oil prices fell as Iraq's production rose and Iran said it would only cooperate in producer talks to freeze output if fellow exporters recognised its right to fully regain market share.

Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.14% from its previous close of 7.12% on Friday.

The benchmark five year yields were trading 2 basis points higher at 7.05% from its previous close of 7.03% on Friday.

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