Bond yields edged higher on Monday, as the central bank's announcement to conduct longer-term reverse repo auctions raised uncertainty over the quantum and pace of open market note purchases in the rest of this fiscal year.
In the global market, US government bond yields were higher on Friday after evidence of stronger-than-expected domestic jobs growth in October outweighed the continued contraction of the manufacturing sector, under pressure from the US-China trade war. Furthermore, Oil prices eased as traders remained cautious ahead of fresh European and US economic data, despite hopes for some resolution to the US-China trade row that has hurt global economic growth and crimped energy demand.
Back home, the yields on new 10 year Government Stock were trading 11 basis point higher at 6.56% from its previous close of 6.45% on Friday.
The benchmark five-year interest rates were trading 10 basis point higher at 6.38% from its previous close of 6.28% on Friday.