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Bond yields trade higher on Tuesday

10 Dec 2019 Evaluate

Bond yields edged higher on Tuesday, as traders await November’s retail inflation data due later this week, while concerns of a likely fiscal slippage continued to linger.

In the global market, US long-dated Treasury yields fell on Monday, after rising three straight days, as risk appetite waned following weak Chinese trade data that rattled bond investors worried about the impact of a prolonged trade battle between the United States and China. Furthermore, Oil prices dropped for a second straight session as the cons of a slowing global demand outlook outweighed the pros of OPEC's agreement with associated producers at the end of last week to deepen crude output cuts in early 2020.

Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.68% from its previous close of 6.66% on Monday.

The benchmark five-year interest rates were trading 2 basis points higher at 6.41% from its previous close of 6.39% on Monday.

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