Bond yields edged higher on Tuesday as concerns of persistent foreign fund outflows from local debt markets will likely overshadow the impact of the greenback's retreat after a recent rally. Sentiments also remained dampened as investors may deploy cash in high-yielding state debt that will be auctioned on November 22, 2016.
In the global market, U.S. Treasury prices gained on Monday as higher yields caused by the recent sell-off tempted some new buyers, though a new sale of two-year notes drew relatively weak demand from fund managers. Furthermore, oil prices rose to their highest level since October as the market priced in a potential output cut led by producer cartel OPEC, although analysts warned that a failure to agree a cut could lead to a ballooning supply overhang by early 2017.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.32% from its previous close of 6.30% on Monday.
The benchmark five-year interest rates were trading 2 basis points higher at 6.30% from its previous close of 6.28% on Monday.