Bond yields traded higher on Tuesday, ahead of fresh supply of state government debt and as investors await the federal government’s borrowing plan for the second half of the financial year.
In the global market, US Treasury yields dropped on Monday, in line with the European bond market, as risk appetite ebbed after softer-than-expected euro zone business activity data fueled recession fears in the region. Furthermore, Oil prices eased in early Asian trade as weak manufacturing data from Europe and Japan focused market attention on a gloomy outlook for demand, though lingering uncertainty over Saudi supply disruption braked the drop.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.77% from its previous close of 6.74% on Monday.
The benchmark five-year interest rates were trading 6 basis point higher at 6.53% from its previous close of 6.47% on Monday.