Bond yields edged lower on Tuesday tracking a fall in U.S. Treasury yields, as comments from a Federal Reserve official indicated that the monetary authority may stick to its rate outlook for the year.
In the global market, U.S. Treasury prices gained on Monday as Chicago Federal Reserve President Charles Evans reiterated the U.S. central bank's view that two more interest rate hikes this year are likely, disappointing investors who had anticipated a faster path of rate increases. Furthermore, oil prices rose early on expectations that an OPEC-led production cut to prop up the market could be extended, and as strong demand was seen to slowly erode a global fuel supply overhang.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.87% from its previous close of 6.89% on Monday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.02% from its previous close of 7.05% on Monday.