Bond yields edged lower on Monday as retail inflation fell to its lowest in over five years, spurring bets that the central bank may relax its policy stance and slash interest rates going forward.
In the global market, the U.S. Treasuries market rallied on Friday with the benchmark yield posting its biggest one-day drop in more than three weeks, as weaker-than-expected consumer inflation data in April diminished the view on whether Federal Reserve would raise interest rates more than once for the rest of the year. Furthermore, oil prices held steady, supported by expectations that OPEC and Russia have agreed to extend a production cut beyond the first half of this year.
Back home, the yields on new 10 year Government Stock were trading 6 basis points lower at 6.85% from its previous close of 6.91% on Friday.
The benchmark five-year interest rates were trading 4 basis points lower at 6.99% from its previous close of 7.03% on Friday.