Bond yields traded lower on Monday, as traders remain encouraged with robust manufacturing PMI data as the Nikkei Manufacturing Purchasing Managers' Index increased to 52.7 in May from April's eight-month low of 51.8, remaining above the 50-mark threshold that separates growth from contraction for a 22nd straight month.
In the global market, US Treasury yields tumbled to 20-month lows on Friday after US President Donald Trump said the United States would impose a tariff on Mexican goods, sparking broad risk aversion. Furthermore, Oil prices fell more than 1%, extending losses of over 3% from Friday, when crude markets racked up their biggest monthly losses in six months amid stalling demand and as trade wars fanned fears of a global economic slowdown.
Back home, the yields on new 10 year Government Stock were trading 6 basis points lower at 6.97% from its previous close of 7.03% on Friday.
The benchmark five-year interest rates were trading 4 basis points lower at 6.81% from its previous close of 6.85% on Friday.