Bond yields edged higher on Monday amid caution ahead of key macroeconomic data scheduled to be released today after the market hours. Bonds may also come under pressure tracking gains in U.S. Treasury yields, amid speculation that the Federal Reserve may consider hiking key interest rates at a meeting next week.
In the global market, U.S. Treasury yields rose on Friday, with long-dated maturities reaching more than two-month highs, in line with Japanese government bonds, after reports suggested the Bank of Japan is considering measures to cut short-to-medium-term yields, while lifting those of long-term debt. Furthermore, Crude prices fell after U.S. oil drillers added rigs to look for new production as producers adapt to cheaper crude, with speculators cutting positions betting on further price rises.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.08% from its previous close of 7.05% on Friday.
The benchmark five year yields were trading 2 basis points higher at 6.96% from its previous close of 6.94% on Friday.
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