Bond yields were treading water on Friday ahead of the release of the government’s market borrowing calendar for April-September. The yields edged lower in previous trading session edged lower after Fed was seen in no rush for hiking interest rates, which bolstered the demand for emerging markets assets, including local bonds. At the conclusion of two day’s policy meet, the Federal Reserve sounded less likely to act aggressively in raising interest rates than investors anticipated.
On the global front, Short and medium-dated U.S. Treasuries yields rose modestly on Thursday, bouncing off multi-week lows on the view that the Federal Reserve is still moving closer to tightening monetary policy despite its recent dovish statement.
Back home, the yields on 10 year Government Stock was trading steady at Thursday’s close of 7.76%.
The benchmark five-year interest rate swaps were trading 1 basis point lower at 7% from its previous close of 7.01% on Thursday.