Bond yields edged higher on Monday, as investors’ maintained cautious approach ahead of key macro data - index of industrial production (IIP) for April and consumer price index-based inflation for May scheduled to be released later today.
In the global market, prices on U.S. Treasury futures slipped on Sunday as after-hour trading began in advance of the U.S. Treasury Department's auctions of $24 billion in three-year notes and $20 billion in benchmark 10-year debt on Monday. Furthermore, oil prices rose as futures traders bet the market may have bottomed after a recent steep fall, even as physical markets remain bloated by oversupply, especially from a relentless rise in U.S. drilling.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.52% from its previous close of 6.50% on Friday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.71% from its previous close of 6.70% on Friday.