Bond yields traded marginally higher on Monday even as escalating Middle East tensions pushed Brent crude prices above $90 a barrel for the first time in a month, raising concerns about inflation.
In the global market, U.S. Treasury yields dropped Friday following new economic data and headed toward a weekly decline as markets reduced expectations for a Federal Reserve rate increase at the upcoming policy meeting this month. Furthermore, Oil prices rose sharply on Monday after the U.S. and Iran traded a series of escalating strikes over the weekend, sparking fears of a wider war and more oil supply disruptions in the Middle East.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.79% from its previous close of 6.78% on Friday.
The benchmark five-year interest rates were trading 2 basis points higher at 6.47% from its previous close of 6.45% on Friday.