Bond yields edged lower on Monday, as traders remained concerned about a global recession as major central banks signaled their intent to move ahead with aggressive rate hikes to tame surging inflation.
In the global market, U.S. Treasury yields tumbled on Friday and the benchmark 10-year note fell the most since COVID-19 roiled markets in March 2020, as investors priced in the likelihood the Federal Reserve will force inflation down to near its target rate. Furthermore, Oil prices fell, paring gains from the previous session, as fears of a global recession weighed on the market even as supply remains tight amid lower OPEC output, unrest in Libya and sanctions on Russia.
Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 7.37% from its previous close of 7.42% on Friday.
The benchmark five-year interest rates were trading 5 basis points lower at 7.15% from its previous close of 7.20% on Friday.