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Bond yields trade higher on Tuesday

27 Feb 2018 Evaluate

Bond yields edged higher on Tuesday, amid concerns that a rise in crude oil prices may feed into domestic inflation.

In the global market, U.S. Treasury yields fell on Monday as traders reduced their bearish bond positions in advance of new Federal Reserve Chairman Jerome Powell's semi-annual monetary policy testimony before Congress this week. Furthermore, U.S. oil prices rose for a fourth session to near a three-week high hit a day earlier, supported by signs of robust production curbs by OPEC and non-OPEC countries and a slight fall in U.S. production.

Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.70% from its previous close of 7.69% on Monday.

The benchmark five-year interest rates were trading flat at its previous close at 7.45% on Monday.