Bond yields edged lower on Monday, as investors may step up purchases in the first trading session of the new financial year that began April 1. However, caution ahead of the nation’s monetary policy decision later this week may weigh on appetite.
In the global market, U.S. Treasury debt yields fell on Friday after a chorus of Federal Reserve officials questioned the need for a faster pace of interest rate increases given tame inflation and just modest growth in the U.S. economy. Furthermore, Oil futures dipped as a higher U.S. rig count indicated rising shale output and stoked worries about global oversupply, while a stronger dollar also pressured prices.
Back home, the yields on new 10 year Government Stock were trading 8 basis points lower at 6.61% from its previous close of 6.69% on Friday.
The benchmark five-year interest rates were trading 4 basis points lower at 6.82% from its previous close of 6.86% on Friday.