Bond yields trade flat on Tuesday

Bond yields traded flat on Tuesday as investors remained cautious amid doubts whether the central bank will hold another open market purchase of bonds in the near term.

In the global market, U.S. Treasury yields lurched higher on Monday, in line with a rise in global bond yields and gains in U.S. stocks, with traders seeing little action ahead of next week's Federal Reserve policy meeting.  Furthermore, oil prices dipped over disagreement within producer cartel OPEC on who should cut how much production in a planned coordinated reduction to prop up prices.

Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 6.86% on Monday.

The benchmark five-year interest rates were trading 6 basis points lower at 6.67% from its previous close of 6.73% on Monday.