Bond yields edged higher on Monday as investors remained cautious ahead of release of retail inflation data for the month of April after market hours today.
In the global market, the Treasury yield curve on Friday was the flattest it had been since July 2007 as shorter-dated yields rose on expectations the Federal Reserve would hike U.S. interest rates in spite of weaker-than-expected economic data this week. Furthermore, oil prices fell away from last week’s multi-year highs as a relentless rise in U.S. drilling activity pointed to increased output, while resistance emerged in Europe and Asia to U.S. sanctions against major crude exporter Iran.
Back home, the yields on new 10 year Government Stock were trading 6 basis points higher at 7.79% from its previous close of 7.73% on Friday.
The benchmark five-year interest rates were trading 5 basis points higher at 7.84% from its previous close of 7.79% on Friday.