Bond yields edged higher on Monday, as the nation’s retail inflation accelerated to a 17-month high in December, raising concerns about a tighter monetary policy in coming months.
In the global market, U.S. Treasury yields climbed on Friday as underlying U.S. consumer prices rose the most in 11 months in December, bolstering expectations of a pickup in domestic inflation and Federal Reserve interest rate hikes this year. Furthermore, oil prices dipped as rising drilling activity in the United States pointed to higher future output, although output cuts led by OPEC and Russia as well as healthy demand kept crude near December 2014 highs reached last week.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.46% from its previous close of 7.44% on Friday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.26% from its previous close of 7.25% on Friday.