Bond yields edged lower on Tuesday, on sustained demand from corporates and banks. However, the gains remained capped as the central bank announced another open market sale of bonds to drain excess cash at banks.
In the global market, U.S. Treasury yields rose on Monday in choppy trading, as Wall Street shares hit record highs and the dollar gained amid upbeat data on U.S. manufacturing and construction spending that backed expectations of another rate increase before the end of the year. Furthermore, Oil prices fell, declining for a second day and sapping more strength from a third-quarter rally, amid signs that a global glut in crude may not be clearing as quickly as some had hoped.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.64% from its previous close of 6.67% on Friday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.65% from its previous close of 6.66% on Friday.