Bond yields edged higher on Monday, tracking gains in U.S. Treasury yields and on the central bank's unexpected auction of short term cash management bills. Investors also remained on the sidelines as the Monetary Policy Committee's three-day meeting starts today.
In the global market, U.S. Treasury yields rose on Friday after data showed the world's largest economy created more jobs than expected in May, fueling expectations that the Federal Reserve could increase the pace of interest rate rises this year. Furthermore, Brent crude oil futures dipped for a second session, with prices coming under pressure from record U.S. output and expectations of higher OPEC supplies.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 7.89% from its previous close of 7.85% on Friday.
The benchmark five-year interest rates were trading 6 basis points higher at 7.90% from its previous close of 7.84% on Friday.