Bond yields trade lower on Monday

Bond yields edged lower on Monday as investors expect a rate cut at the monetary policy committee's maiden two-day meeting that starts today.

In the global market, U.S. Treasury debt yields rose on Friday as risk appetite improved with the rebound in Deutsche Bank share prices and the release of generally solid U.S. economic data that keeps the Federal Reserve on track to raise interest rates in December. Furthermore, Oil prices fell away from $50 per barrel despite last week's agreement by exporters to cut output, with traders doubting the step was big enough to rein in production that has exceeded consumption for the better part of three years.

Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 6.91% from its previous close of 6.96% on Friday.

The benchmark five-year interest rates were trading 11 basis points lower at 6.77% from its previous close of 6.88% on Friday.