Bond yields edged higher on Monday, tracking gains in U.S. Treasury yields and amid concerns of further foreign outflows from local debt.
In the global market, Longer-dated U.S. Treasury yields rose sharply on Friday with 30-year bond yields reaching a four-month high after the release of solid U.S. and Chinese economic data and comments from Federal Reserve Chair Janet Yellen, who suggested the central bank may allow inflation to exceed its 2 percent target. Furthermore, Oil prices fell, pulled down by a rising rig count in the United States, a strong dollar and record OPEC-output which comes amid slowing global economic growth that could erode fuel demand.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.86% from its previous close of 6.85% on Friday.
The benchmark five-year interest rates were trading flat at its previous close at 6.75% on Friday.