Bond yields edged higher on Tuesday, as investors continued selling notes amid higher crude oil prices that fuel concerns of inflation.
In the global market, the gap between U.S. short-dated and long-dated Treasury yields on Monday contracted to its tightest levels in a decade as sluggish domestic inflation underpinned demand for longer-maturity government bonds. Furthermore, Oil prices edged lower after posting the biggest gains in six weeks a day earlier, buoyed by moves by Saudi Arabia's crown prince to tighten his grip on power and rising tensions between the kingdom and Iran.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 6.93% from its previous close of 6.89% on Monday.
The benchmark five-year interest rates were trading 3 basis point higher at 6.78% from its previous close of 6.75% on Monday.