Bond yields were trading higher on Monday, amid traders positioned themselves for higher inflation and an increasingly hawkish Federal Reserve policy outlook.
In global front the U.S. Treasury 10-year yield hit a three-year high on Friday above 2.7% and the 2-year/10-year spread remained near its widest this week as traders bet on a more hawkish stance from the Federal Reserve. Furthermore, oil prices slipped $2 a barrel in early Asian trading, following a second straight weekly decline after world consumers announced plans to release a record volume of crude and oil products from strategic stocks and as China lockdowns continued.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.14% from its previous close of 7.11% on Friday.
The benchmark five-year interest rates were trading 9 basis points higher at 6.55% from its previous close of 6.46% on Friday.