Bond yields edged higher on Monday, on the announcement of a cash management bill auction, with absence of any major steps from the finance ministry to support demand also to weigh on sentiments.
In the global market, U.S. Treasury yields were marginally lower on Friday on light volume as traders awaited the outcome of the Group of Seven summit, fretting about growing trade tensions between the United States and its major allies and global economic growth. Furthermore, oil prices fell, dragged down as U.S. oil drilling activity rose to its highest level since March, 2015, while increasing output in Russia also weighed on the market.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.96% from its previous close of 7.95% on Friday.
The benchmark five-year interest rates were trading 2 basis points higher at 8.00% from its previous close of 7.98% on Friday.