Bond yields edged lower after oil prices fell more than 1 dollar as supply threat eased, however overnight rise of US treasury yields limited further slide of yields. The yields also continued to edge lower on speculation of government not immediately raising foreign investment limit in government bonds.
On the global front, US treasury prices fell and benchmark 10 year note yields rose above 2% on Thursday after the government saw tepid demand for $29 billion sale of seven year notes, a day after a weak five year note auction. Meanwhile, oil prices fell more than $1 on Friday after sharp gains the session before, as worries of a disruption to crude supplies due to Saudi Arabia-led air strikes in Yemen eased.
Back home, the yields on 10 year Government Stock was trading 2 basis points lower at 7.78% from its previous close of 7.80% on Thursday.
The benchmark five-year interest rate swaps were trading 2 basis points lower at 7.06% from its previous close of 7.08% on Thursday.
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