Bond yields edged higher on Tuesday, tracking gains in U.S. Treasury yields ahead of the central bank’s auction of securities to soak up liquidity in the banking system.
In the global market, U.S. Treasury debt prices dropped on Monday in generally thin volume, pressured by comments from Treasury Secretary Steven Mnuchin saying the government is looking into the issuance of ultra long-term bonds, or those with maturities beyond 30 years. Furthermore, oil prices edged down, as a recovery in Libyan output and rising U.S. supplies raised worries that OPEC-led production cuts may not significantly tighten a bloated market.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.99% from its previous close of 6.96% on Friday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.06% from its previous close of 7.05% on Friday.