Bond yields edged flat on Tuesday, as traders remain cautious and reluctant to make significant moves ahead of the release of reports on US consumer and producer price inflation, which are due in the next two days, and could have a significant impact on the outlook for interest rates.
In the global market, Treasury yields rose on Monday on greater optimism that the worst stresses in the U.S. regional banking system may be over, and before the U.S. Treasury Department will this week sell $96 billion in new supply. Furthermore, oil prices rose on Monday as U.S. recession fears eased and some traders saw crude's three-week slide on demand worries as overdone.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 7.04% on Monday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.99% from its previous close of 6.98% on Monday.