Bond yields edged lower on Monday as market participants took comfort from a fall in oil prices, even as they continued to monitor U.S. Treasury yields for further cues.
In the global market, U.S. Treasury yields rose on Friday, with the 10-year yield above the key 4% mark, as persistent strength in the labour market sparked concerns over inflation and the extent of Federal Reserve's rate cuts. Furthermore, Oil prices fell by more than 1% on Monday on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output, offsetting worries about escalating geopolitical tension in the Middle East.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.21% from its previous close of 7.23% on Friday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.09% from its previous close of 7.10% on Friday.
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