Bond yields edged lower on Tuesday, on sustained demand from corporates and banks. However, gains were capped as investors remained cautious ahead of a supply of state papers.
In the global market, U.S. bond prices fell on Monday, with the 10-year yield hitting its highest in over four years amid worries about the growing supply of government debt and accelerating inflation as oil and commodity prices climb. Furthermore, International oil prices hit their highest levels since late 2014, pushed up by expectations of renewed U.S. sanctions against Iran and as OPEC continues withholding supplies amid strong demand.
Back home, the yields on new 10 year Government Stock were trading 7 basis points lower at 7.67% from its previous close of 7.74% on Monday.
The benchmark five-year interest rates were trading flat at its previous close at 7.71% on Monday.