Bond yields edged lower on Tuesday, on sustained demand from corporates and banks. However, gains remained capped as traders awaited the auction of state bonds.
In the global market, U.S. long-dated Treasury yields drifted higher on Monday, as Wall Street shares trimmed losses, in a lull after a hectic week when the Federal Reserve struck an upbeat tone on the U.S. economy. Furthermore, Oil prices fell on expectations that producer cartel OPEC and key ally Russia will gradually increase output after withholding supplies since 2017.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.86% from its previous close of 7.88% on Monday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.91% from its previous close of 7.93% on Monday.