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Bond yields trade higher on Tuesday

12 Dec 2017 Evaluate

Bond yields edged higher on Tuesday, as investors remained cautious ahead of the key economic data -- October IIP and November CPI, which are scheduled to be released later in the day. Besides, a fresh supply of state debt also dampened demand.

In the global market, U.S. Treasury debt prices were little changed on Monday after rallying earlier in the session on safe-haven buying following an explosion in midtown Manhattan which New York Mayor Bill de Blasio described as an attempted terrorist attack. Furthermore, brent crude oil prices jumped above $65 per barrel for the first time since 2015 after the shutdown of the Forties North Sea pipeline knocked out significant supply from a market that was already tightening due to OPEC-led production cuts.

Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 7.22% from its previous close of 7.18% on Monday.

The benchmark five-year interest rates were trading 4 basis points higher at 7.02% from its previous close of 6.98% on Monday.