Bond yields edged lower on Tuesday, on sustained demand from corporates and banks. However, the gains remained capped as investors remained cautious ahead of fresh supply of notes through the rest of the week.
In the global market, U.S. Treasury debt prices inched higher on Monday in thin volume, tracking gains in the European bond market, as investors added to positions after a sell-off over the last few days and ahead of this week's debt auctions and a European Central Bank monetary policy meeting. Furthermore, oil prices inched up, supported by declining exports from southern Iraq.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.79% from its previous close of 6.80% on Monday .
The benchmark five-year interest rates were trading 1 basis point lower at 6.70% from its previous close of 6.71% on Monday.