Bond yields edged higher on Tuesday, after U.S. Treasury yields and crude oil prices rebounded on hopes of stimulus from central banks to combat the coronavirus risk. Heavy supply of state debt in local market may also keep traders away from adding positions.
In the global market, U.S. Treasury prices fell on Monday as long-dated yields rose from record lows, stocks soared and investors cheered stimulus measures from global central banks meant to ease the economic impact of the coronavirus. Furthermore, oil prices rose for a second day on expectations that central banks are likely to enact financial stimulus to offset the impacts of the coronavirus outbreak and growing optimism that OPEC will order deeper output cuts this week.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.35% from its previous close of 6.34% on Monday.
The benchmark five-year interest rates were trading flat at its previous close at 5.82% on Monday.