Bond yields edged lower on Tuesday amid lingering uncertainty about the outlook for interest rates, with U.S. Fed officials warning the central bank may still need to raise rates if inflation persists.
In the global market, U.S. Treasury yields rose on Monday as investors likely sold government bonds to buy new corporate debt, while Federal Reserve officials pointed to uncertainty over the central bank's ability to cut interest rates if inflation remains sticky. Furthermore, oil prices eased less than 1% on Monday as U.S. Federal Reserve officials said they were awaiting more signs that inflation was declining before the central bank starts cutting interest rates.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.07% from its previous close of 7.09% on Friday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.06% from its previous close of 7.08% on Friday.