Bond yields traded lower on Thursday on optimism a slide in Brent crude will slow inflation in the net oil-importing nation. However investors remained cautious with a private report stating that the country remains a 'long way off' from a complete turnaround in the corporate investment cycle despite various positive economic indicators
In the global market, U.S. Treasury yields fell on Wednesday as plunging oil prices added to concerns about low inflation and minutes from the U.S. Federal Reserve's July meeting noted lagging inflation and the weak world economy. Furthermore, Oil markets opened weak on Thursday following sharp falls the previous session, with U.S. contracts hovering slightly above $40 per barrel, levels not seen since the credit crunch of 2009, and globally traded Brent tested support at $47.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.71% from its previous close at 7.74% on Wednesday.
The benchmark five year yields were trading 3 basis points lower at 7.82% from its previous close of 7.85% on Wednesday.