Bond yields traded higher on Monday amid uncertainty over oil prices ahead of an expected U.S. announcement on additional sanctions against Iran.
In the global market, longer-dated U.S. government bond yields moved higher on Friday as investor jitters over the Treasury Department’s extended debt repurchase program and soaring national debt continued to hover over markets. Furthermore, Oil prices fell sharply on Monday as signs of improving traffic through the Strait of Hormuz eased concerns over Middle East supply disruptions, with Iran reportedly allowing some Iraqi oil tankers to pass through the key waterway.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.86% from its previous close of 6.84% on Friday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.48% from its previous close of 6.47% on Friday.