Bond yields traded higher on Tuesday tracking a spike in U.S. Treasury yields overnight amid optimism over the development of a coronavirus vaccine.
In the global market U.S. Treasury yields jumped on Monday, as news of a successful late-stage vaccine from Pfizer Inc spurred optimism that the world's largest economy would emerge from a pandemic-induced recession. Furthermore, oil prices dropped as concerns over fuel demand in the near term in coronavirus-hit Europe and the United States returned to haunt the market after an overnight surge on progress towards a COVID-19 vaccine.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 5.91% from its previous close of 5.87% on Monday.
The benchmark five-year interest rates were trading 4 basis points higher at 5.19% from its previous close of 5.15% on Monday.