Bond yields edged higher on Monday after the central bank's decision over the weekend to increase cash reserve ratio on some deposits to absorb banking system liquidity is expected to reverse the recent rally.
In the global market, U.S. Treasuries were on track for their worst monthly performance in almost eight years on Friday as investors evaluated how much further the sell-off sparked by the surprise election of Republican Donald Trump as U.S. president has to run. Furthermore, oil prices fell over 1 percent, extending declines from last Friday as doubts re-emerged over the ability of major producers to cut output at a planned meeting on Wednesday aimed at reining in global oversupply.
Back home, the yields on new 10 year Government Stock were trading 9 basis points higher at 6.32% from its previous close of 6.23% on Friday.
The benchmark five-year interest rates were trading 10 basis points higher at 6.26% from its previous close of 6.16% on Friday.